In the context of Hardees, what agreement do Olo's Delivery Service Providers make regarding third-party beneficiary obligations?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Olo operates a Platform for Customers and Delivery Service Providers to transact with each other. Olo does not provide the delivery services, and therefore does not assume, and expressly disclaims, any liability arising from Operator's use of the delivery services and the Selected Delivery Service Providers' provision of the delivery services. To facilitate direct dispute resolution between Operator and each Selected Delivery Service Provider in connection with Operator's use of delivery services, Operator's Selected Delivery Service Providers are thirdparty beneficiaries of Operator's obligations as set forth herein, and Operator is a third-party beneficiary of Operator's Selected Delivery Service Providers' obligations as set forth in their agreements with Olo. Olo will indicate to Operator through the Platform which Delivery Service Providers are subject to such third-party beneficiary obligations. Olo's Delivery Service Providers which have contractually committed to such third-party
beneficiary obligations have agreed not to assert a defense based on lack of privity against any Operaotr seeking to enforce their third-party beneficiary rights hereunder.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to the 2025 Hardees FDD, Olo's Delivery Service Providers have specific agreements regarding third-party beneficiary obligations to facilitate dispute resolution between the Hardees operator and the delivery service. Olo operates a platform connecting customers and delivery service providers, but Olo itself disclaims liability for the delivery services provided.
To enable direct resolution of issues, Hardees's Selected Delivery Service Providers are considered third-party beneficiaries of the Hardees operator's obligations, and vice versa. This means that each party can enforce certain obligations against the other, as defined in their respective agreements with Olo. Olo indicates to the Hardees operator which Delivery Service Providers are subject to these third-party beneficiary obligations through its platform.
Specifically, Olo's Delivery Service Providers that have contractually committed to these obligations have agreed not to use a lack of privity (a direct contractual relationship) as a defense against a Hardees operator who is seeking to enforce their third-party beneficiary rights. This ensures that Hardees operators can hold delivery service providers accountable for their obligations, even though there isn't a direct contract between them. This arrangement aims to streamline dispute resolution and ensure that all parties are held responsible for their commitments within the Olo platform.
In essence, this setup provides a framework for Hardees franchisees to address issues directly with the delivery services they utilize through Olo, enhancing accountability and potentially improving the overall customer experience. This is a fairly standard practice in the industry to ensure smooth operations between different service providers and the franchise.