If Hydrodog obtains insurance coverage on behalf of a franchisee, who pays the costs and premiums?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ill 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.
20. ENFORCEMENT.
- 20.1 Severability; Substitution of Valid Provisions. Except as otherwise stated in this Agreement, each term of this Agreement, and any portion of any term, are severable.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Hydrodog has the right to obtain the necessary insurance on the franchisee's behalf. In this case, the franchisee is responsible for paying all costs and premiums associated with obtaining this insurance.
Furthermore, the franchisee must fully cooperate with Hydrodog in securing the insurance policies, including signing all required forms and allowing inspections of their Hydrodog business. The franchisee is obligated to promptly pay Hydrodog, on demand, for all costs and premiums incurred in obtaining the insurance coverage.
It is 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 responsible for any liabilities or claims, even if Hydrodog has secured insurance coverage for the business.
Additionally, if Hydrodog has to procure insurance coverage for the franchisee, the franchisee will be charged a $500 administrative fee for Hydrodog's expenses and efforts in connection with such procurement, which shall be payable immediately upon notice.