Must Hydrodog franchisees' insurance policies contain a waiver of the insurance company's right of subrogation against Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
19.3 Policy Terms. All insurance policies must, without exception:
- (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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, all insurance policies that a franchisee obtains must include a waiver of the insurance company's right of subrogation against Hydrodog. This requirement is part of the broader set of terms that Hydrodog mandates for franchisee insurance policies.
In practical terms, this means that if Hydrodog is sued and incurs damages due to something covered by the franchisee's insurance, the insurance company cannot then sue Hydrodog to recover the money they paid out. This protects Hydrodog from potential legal action by the franchisee's insurance provider.
This requirement is fairly common in franchising, as franchisors typically want to ensure they are protected from liabilities arising from the franchisee's operations. Franchisees should carefully review their insurance policies to confirm that this waiver is included and understand the implications of all required policy terms.