Is worker's compensation insurance always required for a HydroDog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
r standards and specifications.
Insurance
You will be required to procure and maintain insurance in the amounts we prescribe. You agree to provide us with proof of coverage within 10 business days of our request, in the form of a certificate of insurance or other evidence satisfactory to us.
Currently we require the following insurance: general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage, animal bailee ($5,000), commercial automobile ($1,000,000) with uninsured motorist coverage (HydroDog Vehic
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, worker's compensation insurance is not always required. Hydrodog franchisees must procure and maintain several types of insurance, including general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage, animal bailee ($5,000), commercial automobile ($1,000,000) with uninsured motorist coverage (HydroDog Vehicle). However, worker's compensation is only required 'where necessary'.
This means that whether or not you need worker's compensation insurance depends on specific circumstances. These circumstances are not defined in the excerpt. It is common practice that worker's compensation insurance is required when a business has employees, as it covers medical expenses and lost wages for employees injured on the job.
Prospective Hydrodog franchisees should clarify with Hydrodog under what specific conditions worker's compensation insurance is deemed 'necessary'. Understanding these conditions is crucial for budgeting and ensuring full compliance with Hydrodog's requirements and all applicable laws.