If Hydrodog obtains insurance coverage on behalf of a franchisee, must the Hydrodog franchisee allow inspections of their HydroDog Business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In such cases, the franchisee must fully cooperate with Hydrodog's efforts to secure the insurance policies, including signing all required forms.
Specifically, the Hydrodog franchisee must allow any inspections of their HydroDog Business that are required to obtain or maintain the insurance. The franchisee is also responsible for paying, on demand, any costs and premiums that Hydrodog incurs while obtaining insurance on their behalf.
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 absolve the franchisee of any indemnification obligations outlined in the Franchise Agreement. This means that even if Hydrodog secures the insurance, the franchisee remains responsible for any liabilities or claims as described in the agreement.