What is the maximum deductible amount permitted for a Hardees franchisee's insurance policy without written approval from HR?

According to Hardees' 2025 Franchise Disclosure Document, a franchisee's insurance policy cannot have a deductible exceeding $100,000 without written approval from HR. This requirement is part of the general insurance requirements that Hardees mandates for its franchisees. These requirements cover various aspects of the insurance policies, including the protection of HR's rights, permissible contract provisions, and verification of coverage.

This stipulation ensures that franchisees maintain adequate insurance coverage to protect both their business and Hardees' interests. By setting a maximum deductible, Hardees aims to limit the franchisee's out-of-pocket expenses in the event of a claim, which could otherwise financially strain the franchisee and potentially impact the Hardees brand. Franchisees must obtain written approval from HR if they wish to have a deductible exceeding $100,000, giving Hardees control over the risk level associated with each franchise's insurance coverage.

For a prospective Hardees franchisee, this means carefully evaluating insurance options and ensuring that the deductible aligns with Hardees' requirements. If a franchisee desires a higher deductible, they must seek written approval from HR, which may or may not be granted. This requirement is designed to protect Hardees from potential liabilities and ensure that franchisees have sufficient insurance coverage. Franchisees should factor in the cost of insurance with an acceptable deductible when assessing the overall investment and operating costs of a Hardees franchise.