Under what conditions is flood insurance required for a Hardees location?

According to Hardees's 2025 Franchise Disclosure Document, flood insurance is required for franchise locations that reside in FEMA Flood Zones beginning with the letters "A" or "V." This requirement is part of the broader Commercial Property insurance that Hardees franchisees must maintain. This insurance extends coverage on a replacement cost basis for the Franchised Restaurant, business personal property, tenant improvements, and business income, covering loss of profits, continuing expenses, and loss of rents for a minimum of 12 months or the actual loss sustained.

For a prospective Hardees franchisee, this means that the location of the restaurant will significantly impact insurance requirements and costs. Before signing a franchise agreement or lease, franchisees should carefully check the FEMA flood zone designation for the property. If the location is in a zone starting with "A" or "V," they must factor in the cost of flood insurance into their operating budget. This could add a substantial expense, particularly in high-risk flood areas.

It's also important to note that the Commercial Property insurance should have "Special Form" or "All Risk" coverage, with coinsurance conditions not less than 80%. Additionally, earthquake insurance is required for locations in FEMA Seismic Design Categories "E" or "D." Franchisees should consult with an insurance professional to ensure they obtain the correct coverage and understand the specific requirements for their location to comply with Hardees's insurance standards.