What sections in the Hardees Franchise Agreement and Development Agreement pertain to insurance requirements for franchisees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ks in any jurisdiction 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 9 — Franchisee's Obligations (FDD pages 42–43)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Item 22, Section 15 addresses the insurance requirements for franchisees. Hardees franchisees are responsible for covering all losses, damages, demands, or claims related to the development and operation of their franchised restaurant. This includes liabilities, personal injury, death, property damage, or any expenses occurring on the premises or in connection with the restaurant's operations.
Throughout the term of the Franchise Agreement, franchisees must maintain insurance coverage deemed necessary for liabilities. At a minimum, this includes specific insurance policies detailed in Section 15.B. Hardees, and any entity they designate with an insurable interest, must be included as an additional insured on these liability policies, with the exception of workers' compensation/employer's liability. Hardees must also be listed as a loss payee for property insurance to the extent of their insurable interest.
The required insurance policies include Commercial General Liability insurance with limits of not less than $5,000,000 per occurrence and in the aggregate, covering contractual liability, broad form property damage, personal and advertising injury, product liability, completed operations, and food-borne illness, with Damage to Rented Premises coverage of at least $100,000. Franchisees also need Automobile Liability coverage, including owned, leased, non-owned, and hired vehicles, with a combined single limit of not less than $1,000,000 per accident, and additional liability coverage for delivery services. Finally, franchisees must maintain Workers' Compensation as required by law, and Employer's Liability insurance with limits of not less than $500,000, covering all employees, including those in training programs.
All insurance policies must be written by insurance companies satisfactory to Hardees and comply with the standards, specifications, coverages, and limits outlined in the OPM (Operations Procedures Manual) or otherwise provided to the franchisee in writing. This ensures that Hardees franchisees have adequate protection against potential liabilities and that the insurance coverage meets the franchisor's requirements.