What minimum combined single limit per accident is required for Automobile Liability coverage, including owned, leased, non-owned and hired vehicles, for a Hardees franchise?

According to Hardees's 2025 Franchise Disclosure Document, franchisees must maintain Automobile Liability coverage for owned, leased, non-owned, and hired vehicles. The minimum combined single limit required is $1,000,000 per accident. Additionally, franchisees may need to acquire additional liability coverage if they offer delivery services.

This insurance requirement protects Hardees and the franchisee from significant financial losses resulting from automobile accidents. The $1,000,000 minimum coverage ensures that there are sufficient funds to cover potential liabilities, including property damage, bodily injury, and legal expenses, arising from accidents involving vehicles used in the Hardees business.

Franchisees should consult with their insurance providers to determine the appropriate level of coverage based on their specific circumstances, including the number of vehicles used, the extent of delivery services, and other risk factors. While Hardees sets a minimum requirement, franchisees may choose to obtain higher coverage limits for added protection. It is also important to note that the required limits may be satisfied through a combination of Primary and Umbrella/Excess Liability coverage. If satisfied through an Umbrella/Excess Liability coverage, the Umbrella/Excess Liability must be "following form" of the underlying Commercial General Liability, Automobile Liability, and Employer's Liability coverages.

Maintaining adequate insurance coverage is a critical aspect of operating a Hardees franchise, and franchisees must comply with the franchisor's requirements to protect their business and the Hardees brand. Franchisees must provide evidence of satisfactory insurance and proof of payment to Hardees no later than 30 days prior to the scheduled opening date of the Franchised Restaurant; the date Franchisee takes possession of the Franchised Location; or the date construction commences at the Franchised Location, if Franchisee is contractually obligated for the construction. On each policy renewal date thereafter, Franchisee shall again submit evidence of satisfactory insurance and proof of payment therefor to HR.