What are the minimum Commercial General Liability insurance policy limits required per occurrence and in the aggregate for a Hardees franchise?
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 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance with minimum policy limits of $5,000,000 per occurrence and $5,000,000 in the aggregate. This coverage must apply per location and include coverage for contractual liability, broad form property damage, personal and advertising injury, product liability, and completed operations, explicitly including food-borne illness. Additionally, the policy must include Damage to Rented Premises coverage with limits of no less than $100,000.
Hardees requires that HR, and any entity with an insurable interest designated by HR, be included as an additional insured in the liability policies, with the exception of workers' compensation/employer's liability. For property coverage, HR and its affiliates must be named as loss payees to the extent each has an insurable interest. All insurance policies must be written by an insurance company satisfactory to HR, complying with the standards, specifications, coverages, and limits outlined in the OPM (presumably the Operations Procedures Manual) or otherwise provided to the franchisee in writing.
Prospective Hardees franchisees should carefully review the insurance requirements with a qualified insurance broker to ensure they can obtain the necessary coverage at a reasonable cost. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise. It is also important to understand that HR may modify the insurance requirements, and franchisees must comply with these changes promptly.