For a Hardees franchise, what are the minimum Employer's Liability insurance limits required, in addition to statutory Workers' Compensation?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee determines is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Franchised Restaurant which shall include, at a minimum, insurance policies of the kinds, and in the amounts, required by Section 15.B. HR, and any entity with an insurable interest designated by HR, shall be an additional insured in such liabil
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, franchisees must maintain Workers' Compensation insurance as required by law, along with Employer's Liability insurance. The minimum limit for Employer's Liability insurance is $500,000. This coverage must also be in effect for all of the franchisee's employees who participate in any of the training programs described in Section 8 of the franchise agreement.
This requirement ensures that Hardees franchisees have adequate financial protection in case of employee work-related injuries or illnesses. Employer's Liability insurance supplements Workers' Compensation, covering situations where an employee might sue the employer for negligence. The $500,000 limit provides a financial buffer against potential legal claims and medical expenses beyond what Workers' Compensation covers.
Prospective Hardees franchisees should factor the cost of this insurance into their initial investment and ongoing operating expenses. They should also consult with an insurance professional to determine if higher coverage limits are appropriate based on their specific circumstances and location. It is important to note that the franchisor, HR, can modify these insurance requirements, so franchisees must stay informed of any changes through the Operations Procedures Manual (OPM) or written notices.