Are Hydrodog franchisees required to ensure their insurance policies provide indemnity for all obligations they assume under the Franchise Agreement?

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to maintain insurance policies that extend to provide indemnity for all obligations assumed under the Franchise Agreement. Specifically, the insurance must cover all items for which the franchisee is required to indemnify Hydrodog under the provisions of the agreement or otherwise.

This requirement ensures that Hydrodog is protected financially from any liabilities or claims that may arise from the franchisee's operations. It also mandates that all 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. Additionally, Hydrodog and its affiliates must be named as additional insureds on the franchisee's policies.

The insurance company must waive its right of subrogation against Hydrodog, meaning the insurer cannot seek to recover payments made to Hydrodog from the franchisee. The coverage must apply separately to each insured party as if each had their own policy. Furthermore, the insurance company must provide Hydrodog with at least 30 days' prior written notice of any termination, expiration, cancellation, or material modification of the policy. The franchisee cannot reduce policy limits, restrict coverage, cancel, or alter the policies without Hydrodog's prior written consent, and any attempt to do so constitutes a material breach of the Franchise Agreement.

Before the expiration of each insurance policy, the franchisee must provide Hydrodog with a copy of each new, renewal, or replacement policy, along with evidence of premium payment. If the 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 on the franchisee's behalf at the franchisee's expense. The franchisee must cooperate fully with Hydrodog in obtaining the insurance and must sign all required forms. The franchisee is also responsible for paying all costs and premiums incurred by Hydrodog in obtaining insurance on their behalf. 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.