Are Hydrodog franchisees required to ensure their insurance coverage applies separately to each insured?
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.
- 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 ensure that their insurance coverage applies separately to each insured party. This means that the insurance policy must act as if a separate policy had been issued to each insured individual or entity, ensuring that each party has adequate protection under the policy. This requirement is designed to protect both the franchisee and Hydrodog from potential liabilities.
Specifically, the insurance policies obtained by Hydrodog franchisees must contain a provision ensuring that the coverage applies separately to each insured party, as if each party had its own individual policy. This is a standard practice in franchising to ensure that all parties are adequately protected and that there are no conflicts of interest in the event of a claim.
This requirement is part of a broader set of insurance obligations that Hydrodog franchisees must adhere to, including maintaining specific types and amounts of coverage, naming Hydrodog as an additional insured, and providing evidence of coverage. Failing to comply with these insurance requirements can result in Hydrodog obtaining the necessary coverage on the franchisee's behalf, with the franchisee bearing the costs and an additional administrative fee of $500.