What evidence of insurance coverage does Hardees require from the franchisee before opening the Franchised Restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. All required insurance policies shall be in full force and effect and Franchisee shall submit to HR evidence of satisfactory insurance and proof of payment therefore no later than the date the first of the following occurs: (1) 30 days prior to the scheduled opening date of the Franchised Restaurant; (2) the date Franchisee takes possession of the Franchised Location, or (3) the date construction commences at the Franchised Location, if Franchisee is contractually obligated for the construction. On each policy renewal date thereafter, Franchisee shall again submit evidence of satisfactory insurance and proof of payment therefor to HR. The evidence of insurance shall include a statement by the insurer that the policy or policies will not be canceled or materially altered without at least 30 days' prior written notice to HR. Upon request, Franchisee also shall provide to HR copies of all or any policies, and policy amendments and endorsements.
HR may regulate the types, amounts, terms and conditions of insurance coverage required for the Franchised Restaurant, and standards for underwriters of policies providing required insurance coverage, including: (a) HR's protection and rights under these policies as an additional insured or loss payee; (b) required or permissible insurance contract provisions; (c) assignment of policy rights to HR; (d) periodic verification of insurance coverage that must be furnished to HR and; (e) similar matters related to insured and uninsured claims. Franchisee shall receive written notice of such modifications and shall take prompt action to comply.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees must provide evidence of satisfactory insurance and proof of payment to Hardees no later than the earliest of these dates: 30 days before the scheduled opening, when the franchisee takes possession of the location, or when construction starts if the franchisee is responsible for construction. After the initial submission, franchisees must resubmit this evidence on each policy renewal date.
The evidence must include a statement from the insurer guaranteeing at least 30 days' prior written notice to Hardees before any cancellation or material alteration of the policies. Hardees also has the right to request copies of all insurance policies, amendments, and endorsements. This ensures Hardees is kept informed about the franchisee's insurance coverage and can take necessary steps if the franchisee fails to maintain adequate insurance.
Hardees also regulates the types, amounts, terms, and conditions of insurance coverage required for the Franchised Restaurant, and standards for underwriters of policies providing required insurance coverage. This includes Hardees's protection and rights under these policies as an additional insured or loss payee, required or permissible insurance contract provisions, assignment of policy rights to Hardees, periodic verification of insurance coverage that must be furnished to Hardees, and similar matters related to insured and uninsured claims. Franchisees will receive written notice of any modifications to these requirements and must promptly comply.