Must Hydrodog franchisees' insurance policies contain provisions that limit or reduce coverage for Hydrodog or its affiliates?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) contain no provision which in any way limits or reduces coverage for us in the event of any claim by us or any of our affiliates, directors, officers or agents;
- (b) extend to provide indemnity for all obligations assumed by you under this Agreement and all items for which you are required to indemnify us under the provisions of this Agreement or otherwise;
- (c) name us and our affiliates as additional insureds;
- (d) contain a waiver of the insurance company's right of subrogation against us;
- (e) provide that the coverage afforded applies separately to each insured against whom a claim is brought as though a separate policy had been issued to each insured;
- (f) provide that the insurance company will provide us with at least 30 days' prior written notice of termination, expiration, cancellation or material modification of any policy; and
- (g) provide that you cannot reduce the policy limits, restrict coverage, cancel or otherwise alter or amend the policies without our prior written consent, and any such attempt to do so without our consent shall be considered a material breach of this Agreement.
- 19.4 Evidence of Coverage. Before the expiration of the term of each insurance policy, you must furnish us with a copy of each new, renewal or replacement policy you have obtained to extend your coverage, along with evidence of the premium payment. If you fail to maintain the required insurance coverage, or fail to furnish us with satisfactory evidence of insurance coverage and premium payments, we reserve the right, in addition to our other rights and remedies under this Agreement, to obtain any required insurance coverage on your behalf at your expense. If we do so, you must fully cooperate with us in our effort to obtain the insurance policies and must promptly sign all forms required to obtain or maintain the insurance. You must also allow any inspections of your HydroDog Business required to obtain or maintain the insurance. Finally, you must pay us, on demand, any costs and premiums we incur in obtaining insurance on your behalf. Neither your obligation to maintain insurance coverage nor our maintenance of insurance on your behalf will reduce or absolve you of any obligations of indemnification described in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance policies, and these policies must not contain provisions that limit or reduce coverage for Hydrodog or its affiliates. Specifically, the insurance policies must not limit or reduce coverage for Hydrodog in the event of any claim by Hydrodog or its affiliates, directors, officers, or agents. This requirement ensures that Hydrodog is protected under the franchisee's insurance coverage.
Furthermore, the franchisee's insurance policies must extend to provide indemnity for all obligations assumed by the franchisee under the Franchise Agreement. The policies must also name Hydrodog and its affiliates as additional insureds and contain a waiver of the insurance company's right of subrogation against Hydrodog. This means that the insurance company cannot pursue Hydrodog to recover any payments made to the franchisee. The coverage must apply separately to each insured party as if a separate policy had been issued to each.
Hydrodog franchisees must also ensure that their insurance policies provide Hydrodog with at least 30 days' prior written notice of termination, expiration, cancellation, or material modification of any policy. Additionally, franchisees cannot reduce the policy limits, restrict coverage, cancel, or otherwise alter or amend the policies without Hydrodog's prior written consent. Any attempt to do so without consent is considered a material breach of the Franchise Agreement. These stipulations are in place to protect Hydrodog's interests and ensure continuous and adequate insurance coverage is maintained by the franchisee.
Before the expiration of each insurance policy, Hydrodog franchisees must furnish Hydrodog with a copy of each new, renewal, or replacement policy, along with evidence of premium payment. If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of coverage and premium payments, Hydrodog reserves the right to obtain the necessary insurance coverage on the franchisee's behalf at the franchisee's expense. The franchisee is obligated to cooperate fully with Hydrodog in obtaining the insurance policies and must promptly sign all required forms. The franchisee must also allow inspections of their HydroDog Business required to obtain or maintain the insurance and pay, on demand, any costs and premiums Hydrodog incurs in obtaining insurance on their behalf. However, the franchisee's obligation to maintain insurance coverage, or Hydrodog's maintenance of insurance on the franchisee's behalf, does not reduce or absolve the franchisee of any indemnification obligations described in the Franchise Agreement.