When is the insurance reimbursement and administrative fee payable to Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
dify or obtain new software that we or our affiliates license to you, you must pay us, or our designee, our, or our designee's, then-current fees for such software, including any up-front and ongoing fees.
- 6.17 Insurance Reimbursement. Should you, for any reason, not procure and maintain such insurance coverage as required by this Agreement, we shall have the right and authority (without, however, any obligation to do so) to immediately procure su
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 procure the insurance and charge the franchisee for it. The franchisee is also responsible for a $500 administrative fee to cover Hydrodog's expenses and efforts in obtaining the insurance.
The insurance charges and the administrative fee are payable by the franchisee immediately upon notice from Hydrodog. This means that as soon as Hydrodog informs the franchisee of these charges, the franchisee is obligated to pay them.
This requirement underscores the importance of maintaining the required insurance coverage. Failure to do so not only allows Hydrodog to procure insurance on the franchisee's behalf but also subjects the franchisee to immediate payment obligations, including an additional administrative fee. Franchisees should ensure they understand and comply with all insurance requirements outlined in the franchise agreement to avoid these additional costs and potential disruptions to their business.