What happens if a Hydrodog franchisee fails to maintain required insurance coverage?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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, 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 on the franchisee's behalf. This is in addition to any other rights and remedies Hydrodog may have under the Franchise Agreement.
The franchisee is obligated to fully cooperate with Hydrodog in obtaining these insurance policies, including signing all required forms and allowing inspections of the Hydrodog Business. The franchisee is also responsible for promptly paying all costs and premiums that Hydrodog incurs in obtaining the insurance.
It's important to note that the franchisee's obligation to maintain insurance coverage and Hydrodog's potential procurement of insurance on the franchisee's behalf does not reduce or absolve the franchisee of any indemnification obligations outlined in the Franchise Agreement. This means the franchisee remains liable for any claims or losses, even if Hydrodog secures the insurance.