Under what conditions can Hydrodog obtain insurance coverage for a franchisee?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may obtain insurance coverage for a franchisee's HydroDog Business if the franchisee does not do so themselves. This action is not required of Hydrodog, but is an option they may exercise. If Hydrodog obtains insurance coverage on behalf of the franchisee, the franchisee is responsible for reimbursing Hydrodog for the costs of the insurance, in addition to a $500 administrative fee.

This means that if a Hydrodog franchisee fails to secure the necessary insurance for their business, Hydrodog has the right to step in and obtain coverage. This protects Hydrodog from potential liabilities associated with the franchisee's operations. However, the franchisee ultimately bears the financial responsibility for the insurance premiums and an additional administrative fee.

For a prospective Hydrodog franchisee, this highlights the importance of securing adequate insurance coverage independently. Failure to do so not only puts the franchisee at risk but also gives Hydrodog the right to obtain coverage and pass the costs, plus a $500 administrative fee, onto the franchisee. This underscores the need for franchisees to understand and meet all insurance requirements outlined in the Franchise Agreement to avoid additional expenses and maintain control over their insurance coverage.