What claims are included in the general release required for a Hardees franchise transfer?

According to Hardees's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, they, along with individuals who executed the agreement and all guarantors, must execute a general release and covenant not to sue. This release, in a form satisfactory to Hardees, covers any and all claims against Hardees, its affiliates, and their respective officers, directors, managers, shareholders, members, agents, and employees in their corporate and individual capacities. These claims include, but are not limited to, those arising under federal, state, and local laws, rules, and ordinances.

The release also encompasses claims arising out of or relating to the Franchise Agreement, any other agreements between the franchisee and Hardees or its affiliates, and the franchisee's operation of the franchised restaurant. This extends to all other restaurants operated by the franchisee that are franchised by Hardees or its affiliates. Essentially, the release aims to protect Hardees from potential legal actions related to the franchise relationship and the operation of the restaurants.

It is important to note that this general release is a standard requirement for franchise transfers, ensuring that Hardees is protected from potential liabilities associated with the previous franchisee's operation. However, the specific terms and scope of the release should be carefully reviewed by a prospective franchisee and their legal counsel to fully understand the implications of signing such a document. Franchisees should pay close attention to what laws and agreements are covered by the release, and how this might impact their rights.