What is the minimum Commercial General Liability insurance limit per occurrence and in the aggregate that a Hardees franchisee must maintain?
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 with specific minimum limits. 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 include coverage for contractual liability, broad form property damage, personal and advertising injury, product liability, and completed operations. The policy should also not exclude food-borne illnesses.
In addition to the general liability coverage, the insurance must include Damage to Rented Premises coverage with limits not less than $100,000. Hardees also requires that HR (Hardees Restaurants LLC) and any entity they designate with an insurable interest be named as additional insureds in the liability policies, except for workers' compensation and employer's liability.
These insurance requirements are designed to protect both the franchisee and Hardees from potential financial losses due to various liabilities. Franchisees should consult with an insurance professional to ensure they obtain adequate coverage that meets these minimum requirements and addresses their specific business needs. Maintaining the required insurance is a condition of the franchise agreement, and failure to do so could result in Hardees procuring the insurance at the franchisee's expense.