Does Hydrodog maintaining insurance on behalf of a franchisee reduce or absolve the franchisee of any obligations of indemnification described in the Hydrodog Franchise Agreement?

According to Hydrodog's 2025 Franchise Disclosure Document, neither the franchisee's obligation to maintain insurance coverage nor Hydrodog's maintenance of insurance on the franchisee's behalf reduces or absolves the franchisee of any indemnification obligations outlined in the Franchise Agreement. This means that even if Hydrodog secures insurance coverage for the franchisee, the franchisee remains responsible for fulfilling their indemnification duties as detailed in the agreement.

Indemnification generally requires the franchisee to protect Hydrodog from losses, damages, or liabilities arising from the franchisee's business operations. This obligation exists independently of any insurance coverage. The franchisee is still responsible for covering costs and claims, even if Hydrodog maintains insurance on their behalf.

This clause highlights the importance of understanding the full scope of the franchisee's responsibilities. Franchisees should carefully review the indemnification provisions in the Franchise Agreement and ensure they understand their potential liabilities. It is advisable to consult with a legal professional to fully grasp the implications of these obligations and how they interact with insurance coverage.