For a Hardees franchise, what is the minimum Commercial General Liability insurance policy limit required per occurrence and in the aggregate?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
imitation their interests in litigation or proceedings before the U.S. Patent and Trademark Office or other tribunal relating to the Proprietary Marks.
15. INSURANCE
- A. Franchisee shall be responsible for all loss or damage arising from or related to Franchisee's development and operation of the Franchised Restaurant, and for all demands or claims with respect to any loss, liability, personal injury, death, propert
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee must maintain Commercial General Liability insurance with minimum policy limits of $5,000,000 per occurrence and $5,000,000 in the aggregate. This coverage must apply per location and include coverage for contractual liability, broad form property damage, personal and advertising injury, product liability, and completed operations. The coverage should not exclude food-borne illnesses.
In addition to the general liability coverage, the franchisee is also required to have Damage to Rented Premises coverage with limits of no less than $100,000. Hardees, along with any entity they designate with an insurable interest, must be included as an additional insured in the liability policies, with the exception of workers' compensation/employer's liability.
These insurance requirements are designed to protect both the franchisee and Hardees from potential financial losses due to various liabilities. Franchisees must ensure they obtain adequate coverage from an insurance company that is satisfactory to Hardees and meets the standards outlined in the Franchise Agreement or the OPM (Operations Procedures Manual). Failing to maintain the required insurance could allow Hardees to procure insurance on the franchisee's behalf and charge the franchisee for the costs.