Under what circumstances can Hydrodog require franchisees to obtain insurance policies from a designated supplier?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may require franchisees to obtain all or a portion of their insurance policies from a supplier designated by them.

This means that as a Hydrodog franchisee, you might not have the freedom to choose your own insurance provider for all your insurance needs. Hydrodog reserves the right to mandate that you use a specific supplier they have chosen for some or all of your insurance policies. This is a fairly common practice in franchising, allowing the franchisor to ensure consistent coverage and potentially negotiate better rates due to bulk purchasing power.

It is important to note that all insurance policies, except workers' compensation and commercial property liability policies, must contain a provision naming Hydrodog and its related entities as an additional insured. The general liability policy should include an additional insured – grantor of franchise endorsement, specifically with respect to liability arising from your premises, operations, products, and completed operations. Furthermore, all required insurance policies, except for Workers' Compensation, must be written by insurance companies with a rating of A-VIII or better in the most recent A.M. Best's Insurance Report (or a comparable publication specified by Hydrodog). Workers' Compensation policies can be issued by insurance companies with a policyholder rating of B+ or better.

Prospective franchisees should inquire with Hydrodog about the specific types of insurance policies that may be required to be obtained from a designated supplier, the reasons for this requirement, and whether there are any potential cost implications associated with using a designated supplier versus choosing their own insurance provider. Understanding these requirements is crucial for budgeting and ensuring compliance with Hydrodog's franchise agreement.