When undertaking construction, leasehold improvements, renovation, refurbishment, or remodeling of a Hardees Franchised Restaurant, what insurance coverages must the franchisee's general contractor maintain?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ensation, statutory as required by law, and Employer's Liability insurance with limits not less than $500,000, and such other insurance as may be required by the state or locality in which the Franchised Restaurant is operated. This coverage shall also be in effect for all of Franchisee's employees who participate in any of the training programs described in Section 8.
The required limits set forth in 15.B(1)-(3) may be satisfied through a combination of Primary and Umbrella/Excess Liability coverage. If satisfied through an Umbrella/Excess
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, when a franchisee undertakes construction, leasehold improvements, renovation, refurbishment, or remodeling of a franchised restaurant, the general contractor must maintain specific insurance coverages. These include Commercial General Liability insurance (with products liability and independent contractors coverage), Automobile Liability coverage for owned, leased, hired, and non-owned vehicles, and Builder's Risk, each with limits no less than $1,000,000. Hardees must be named as an additional insured on these policies.
In addition to the liability and builder's risk insurance, the general contractor must also maintain Workers' Compensation and Employer's Liability insurance as required by state law. This ensures that any on-site injuries or accidents are covered according to the legal requirements of the state in which the Hardees restaurant is located.
It is important for prospective Hardees franchisees to understand these insurance requirements, as failure to ensure that their general contractor maintains the specified coverage could result in significant financial and legal liabilities for both the franchisee and the contractor. Franchisees should verify that their contractors have these policies in place and that Hardees is properly named as an additional insured to protect all parties involved during the construction or remodeling process.