Who must Hardees franchisees include as an additional insured on their liability policies, excluding workers' compensation/employer's liability?

According to Hardees' 2025 Franchise Disclosure Document, franchisees are required to include HR (Hardee's Restaurants LLC) and any entity designated by HR with an insurable interest as additional insureds on their liability insurance policies, with the exception of workers' compensation/employer's liability coverage. This requirement ensures that Hardees is protected against potential liabilities arising from the franchisee's operations.

This means that in the event of a claim related to the franchisee's restaurant operations (excluding employee-related injuries covered by workers' compensation), Hardees, as an additional insured, would be protected by the franchisee's insurance policy. This protection extends to any entity that Hardees designates as having an insurable interest, which could include landlords, lenders, or other parties involved in the franchise operation.

Franchisees must ensure that their insurance policies specifically name Hardees and its designated entities as additional insureds to comply with the franchise agreement. Failure to do so could result in Hardees procuring the necessary insurance and charging the cost to the franchisee. This requirement is a standard practice in franchising, as it protects the franchisor's brand and reputation from liabilities arising from the franchisee's business operations.