According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may require franchisees to obtain different or additional kinds of insurance coverage under certain circumstances. These circumstances include factors such as inflation, the identification of new risks associated with the business, changes in laws or standards of liability, higher damage awards in legal cases, or other relevant changes and circumstances that could impact the financial risk exposure of the Hydrodog business.

Hydrodog retains the right to periodically increase the amounts of coverage required under the franchisee's insurance policies to adequately protect the franchise system. However, Hydrodog specifies that it will not decrease the coverage amounts. This flexibility allows Hydrodog to respond to evolving market conditions and potential liabilities, ensuring that franchisees maintain sufficient protection against potential financial losses.

It is important for prospective Hydrodog franchisees to understand that the specific types and amounts of insurance coverage required may change over time. Franchisees must stay informed about any adjustments to the insurance requirements and promptly comply with these changes to avoid potential breaches of the franchise agreement. Failure to maintain the required insurance coverage could result in Hydrodog procuring insurance on the franchisee's behalf, with all associated costs and premiums charged to the franchisee, along with a $500 administrative fee.