Is Hydrodog obligated to obtain insurance coverage for a franchisee if the franchisee does not?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Insurance | Reimbursement of our costs plus a $500 administrative fee | On demand | We may (but are not required to) obtain insurance coverage for your HydroDog Business if you do not do so. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog is not required to obtain insurance coverage for a franchisee's business if the franchisee fails to do so. However, Hydrodog retains the option to obtain such coverage. If Hydrodog chooses to obtain insurance on behalf of the franchisee, the franchisee is responsible for reimbursing Hydrodog for the costs incurred, in addition to a $500 administrative fee.
This means that as a prospective Hydrodog franchisee, you are primarily responsible for securing your own business insurance. Failure to maintain adequate insurance could lead Hydrodog to procure it for you, but at your expense plus an additional fee. This protects Hydrodog from potential liabilities arising from your business operations.
Franchisees should consider this when budgeting for their business. It is crucial to obtain the necessary insurance coverage to avoid the additional costs and administrative fees that Hydrodog may impose if they have to step in and secure insurance on your behalf. Maintaining proper insurance is a standard requirement in most franchise systems to protect both the franchisee and the franchisor from unforeseen events and liabilities.