Can a disclaimer signed by a Hardees franchisee waive a claim of fraud in the inducement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment.
This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, whether a disclaimer signed by a franchisee can waive a claim of fraud in the inducement depends on the state where the franchise is located. For Minnesota franchisees, no disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship can be construed as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
Similarly, for North Dakota franchisees, no statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
For California franchisees, the addendum to the Hardees Restaurant Franchise Agreement includes a waiver of rights under Section 1542 of the California Civil Code, which relates to claims the creditor doesn't know or suspect to exist. This means that California Hardees franchisees are agreeing that, with respect to this release, any and all rights granted under Section 1542 of the California Civil Code are expressly waived. That Section reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor."