Which section of the Hydrodog manual discusses Insurance Requirements?

According to the 2025 Hydrodog FDD, Section 11(l) of the Hydrodog manual outlines the insurance coverage requirements for franchisees. This section details the types, amounts, terms, and conditions of insurance coverage that franchisees must maintain for their Hydrodog business. It also specifies standards for underwriters, the protection and rights Hydrodog has under these policies as an additional named insured, and required or impermissible insurance contract provisions.

Furthermore, Section 11(l) covers the assignment of policy rights to Hydrodog, the periodic verification of insurance coverage that franchisees must furnish, and Hydrodog's right to obtain insurance coverage for the franchisee's business at the franchisee's expense if they fail to obtain the required coverage. It also addresses Hydrodog's right to defend claims and similar matters related to insured and uninsured claims.

In practical terms, this means that prospective Hydrodog franchisees need to carefully review Section 11(l) of the manual to understand their insurance obligations. They must ensure they obtain the correct types and amounts of coverage from approved carriers and comply with all policy terms. Failure to meet these requirements could result in Hydrodog obtaining insurance on their behalf at the franchisee's expense or other penalties.

It is important for franchisees to understand that the System Standards, which include the insurance requirements detailed in the manual, can be modified by Hydrodog. Franchisees are obligated to comply with these modifications, which may include investing additional capital or incurring higher operating costs. Non-compliance can lead to fees, mandatory training, suspension of rights, or even termination of the franchise agreement.