What is the condition that requires someone to personally and unconditionally agree to the Hardees Restaurant Franchise Agreement as a Guarantor?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of, and as an inducement to, the execution of the Hardee's Restaurant Franchise |
|---|
| Agreement dated as of ("Agreement") by Hardee's Restaurants |
| LLC ("HR"), entered into with ("Franchisee"), |
| the undersigned ("Guarantors"), each of whom is a member of Franchisee's Continuity Group or a 10% |
| Owner, or the spouse thereof, hereby personally and unconditionally agree as follows: |
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, certain individuals must personally and unconditionally agree to the Hardee's Restaurant Franchise Agreement as Guarantors. Specifically, this requirement applies to individuals who are members of the Franchisee's Continuity Group, those who are 10% Owners, or the spouses of either of these groups. This agreement serves as an inducement for Hardee's Restaurants LLC to execute the Franchise Agreement with the Franchisee.
In practical terms, this means that if you fall into one of these categories (Continuity Group member, 10% Owner, or spouse thereof), you will be required to sign a personal guarantee. This guarantee makes you personally liable for the financial and operational obligations of the Hardees franchise. It is a significant commitment, as it puts your personal assets at risk if the franchise fails to meet its obligations under the Franchise Agreement.
This requirement is fairly standard in franchising, as franchisors like Hardees seek to ensure that franchisees are fully committed to the business and have a vested interest in its success. By requiring a personal guarantee, Hardees aims to mitigate its risk and ensure that there are individuals who are directly accountable for the franchise's performance. Prospective franchisees should carefully consider the implications of providing a personal guarantee and seek legal and financial advice before signing the Franchise Agreement.