Is a Hardees franchisee required to include coverage for food-borne illness in their Commercial General Liability insurance?
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' 2025 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance that specifically includes coverage for food-borne illness. The policy must have limits of not less than $5,000,000 per occurrence and in the aggregate. This coverage applies per location and must also include contractual liability, broad form property damage, personal and advertising injury, product liability, and completed operations. Additionally, the policy must include Damage to Rented Premises coverage with limits not less than $100,000.
This requirement ensures that Hardees franchisees are financially protected against potential claims arising from food-borne illnesses, which can be a significant risk in the restaurant industry. The high coverage limits reflect the potential for substantial damages and legal costs associated with such incidents. By mandating this specific coverage, Hardees aims to safeguard its brand reputation and protect both the franchisee and the company from financial losses due to food safety issues.
Furthermore, Hardees requires that HR (Hardee's Restaurants LLC) and any entity designated by HR with an insurable interest be named as an additional insured in the liability policies, except for workers' compensation/employer's liability. This provision allows Hardees to be directly protected under the franchisee's insurance policy, providing an additional layer of security. Franchisees must ensure that their insurance policies comply with the standards, specifications, coverages, and limits set forth in the OPM (Operating Procedures Manual) or as otherwise provided in writing by Hardees.