What responsibility does a Hardees franchisee have for loss or damage related to the operation of the franchised restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
tion shall constitute a breach of this Agreement and an infringement of the rights of HR and HR Affiliates in and to the Proprietary Marks.
Franchisee promptly shall inform HR in writing as to any infringement of the Proprietary Marks of which it has knowledge. Franchisee shall not make any demand or serve any notice, orally or in writing, or institute any legal action or negotiate, compromise or settle any controversy with respect to any such infringement without first obtaining HR's written approval. HR shall have the right, but not the obligation, to bring such action or take such steps as it may deem advisable to prevent any such infringement and to
join Franchisee as a party to any action in which HR or HR Affiliates are or may be a party and as to which Franchisee is or would be a necessary or proper party. Franchisee also shall promptly notify HR of any litigation (including administrative or arbitration proceedings) of which Franchisee is aware instituted against HR, HR Affiliates or Franchisee relating to the Proprietary Marks. Franchisee shall execute any and all instruments and documents, render such other assistance and do any acts and things as may, in the opinion of counsel for HR or HR Affiliates, be necessary or advisable to protect and maintain the interests of HR and HR Affiliates in the Proprietary Marks, including without limitation 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, property damage, or expense whatsoever occurring upon the premises of, or in connection with the development or operation of, the Franchised Restaurant. Franchisee shall, at its sole expense, maintain in full force and effect throughout the term of this Agreement that insurance which Franchisee determines is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Franchised Restaurant which shall include, at a minimum, insurance policies of the kinds, and in the amounts, required by Section 15.B. HR, and any entity with an insurable interest designated by HR, shall be an additional insured in such liabil
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the franchisee is responsible for all loss or damage arising from the development and operation of the franchised restaurant. This includes any demands or claims related to loss, liability, personal injury, death, property damage, or expenses occurring on the premises or in connection with the restaurant's operation.
To mitigate these risks, a Hardees franchisee must maintain insurance coverage throughout the term of the franchise agreement. The franchisee determines the necessary or appropriate coverage for liabilities, but it must include specific minimum insurance policies. Hardees and any entity they designate with an insurable interest must be included as an additional insured in the liability policies, with the exception of workers' compensation/employer's liability, and as a loss payee for property to the extent each has an insurable interest.
The minimum insurance policies required include Commercial General Liability insurance with policy limits of no less than $5,000,000 per occurrence and in the aggregate, covering various liabilities such as contractual liability, property damage, personal and advertising injury, product liability (including food-borne illness), and $100,000 for damage to rented premises. Additionally, Automobile Liability coverage with a combined single limit of no less than $1,000,000 per accident is required, including coverage for owned, leased, non-owned, and hired vehicles, with additional coverage for delivery services if applicable. Finally, Workers' Compensation and Employer's Liability insurance with limits not less than $500,000 is required, along with any other insurance mandated by state or local laws.