What is the required action regarding compliance with insurance policies for a Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Account, and CRM as we specify in the Manual which may include vendor designations.
Insurance. You must obtain and maintain, at your own expense, such insurance coverage as we require in the Operations Manual and as required by your state laws.
Our current insurance specifications are as follows:
| Comprehensive General Liability Insurance | $1,000,000 (or more, if state law requires) | Per occurrence |
|---|---|---|
| Commercial Automobile Liability Insurance | $1,000,000 (or more, if state law requires) | Per Occurrence |
| Worker's Compensation | $100,000 (or more, if state law requires) | Per Employee |
Additionally, we recommend that you purchase business interruption insurance. You may obtain insurance to cover any risk associated with your activity. All insurance policies must name us as an "additional insured" party.
Safety and Personal Protection Equipment. You must purchase such safety equipment as we may designate and subject to any specifications we may issue, which may include a vendor designation.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–27)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain insurance coverage as specified in the Operations Manual and as mandated by state laws. The required insurance policies include commercial general liability, auto, and workers' compensation. The costs for these policies can vary by state and may change over time based on the franchisee's risk management skills. Zoomin Groomin also recommends that franchisees purchase business interruption insurance.
The current insurance specifications mandate minimum coverage amounts. Comprehensive general liability insurance requires $1,000,000 per occurrence, or more if state law requires. Commercial automobile liability insurance also requires $1,000,000 per occurrence, or more if state law requires. Worker's compensation insurance requires $100,000 per employee, or more if state law requires.
Zoomin Groomin requires that all insurance policies name them as an "additional insured" party. Franchisees must comply with these insurance requirements to remain in compliance with the franchise agreement. The franchisor issues and modifies specifications and standards to franchisees or approved suppliers through their Operations Manual or informational bulletins issued from time to time.