What provision must all Hydrodog insurance policies (except workers compensation and commercial property liability) contain regarding additional insured parties?

According to Hydrodog's 2025 Franchise Disclosure Document, all insurance policies, with the exception of workers compensation and commercial property liability, must include a provision that names Hydrodog and its related entities as additional insured parties. This requirement specifically applies to liability arising from the franchisee's premises, operations, products, and completed operations. In these cases, the general liability policy must incorporate an additional insured – grantor of franchise endorsement.

This requirement means that Hydrodog aims to protect itself from potential liabilities associated with the franchisee's business activities. By being named as an additional insured, Hydrodog can be shielded from financial losses resulting from lawsuits or claims related to the franchisee's operations. This is a common practice in franchising, as franchisors often seek to mitigate risks associated with their franchisees' actions.

For a prospective Hydrodog franchisee, this requirement means they will need to ensure their insurance policies meet this specific condition. This may involve working closely with their insurance provider to add the necessary endorsement to their general liability policy. Failure to comply with this insurance requirement could result in a breach of the franchise agreement and potential penalties.

Furthermore, the FDD states that Hydrodog can change the insurance coverage requirements from time to time. It is also within Hydrodog's right to require franchisees to obtain all or a portion of their insurance policies from a supplier designated by them. Therefore, it is important for prospective franchisees to stay informed about any changes to the insurance requirements and to maintain open communication with Hydrodog regarding their insurance coverage.