Does the Hardees franchise agreement allow for class action suits or trial by jury?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Developer and HR waive, to the fullest extent permitted by law, any right or claim of any consequential, punitive or exemplary damages against each other and agree that, in the event of a dispute between them, each shall be limited to the recovery of actual damages sustained by it. Developer and HR waive, to the fullest extent permitted by law, the right to bring, or be a class member in, any class action suits and the right to trial by jury.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, the franchise agreement includes waivers regarding class action suits and the right to a jury trial. Specifically, Hardees and the developer (franchisee) waive the right to bring or be a class member in any class action suits to the fullest extent permitted by law. Additionally, they waive the right to a trial by jury to the fullest extent permitted by law.
This means that a Hardees franchisee is restricted from participating in a class action lawsuit against Hardees or demanding a jury trial in disputes related to the franchise agreement. Instead, disputes must be handled individually, and the franchisee agrees to resolve issues through alternative methods such as arbitration or bench trials (trials by a judge). This is a significant legal consideration for prospective franchisees.
These waivers are generally enforceable, but their enforceability can depend on specific state laws and the nature of the claim. Franchisees should be aware of these limitations and consult with an attorney to understand the full implications of these waivers under the laws governing their franchise agreement. Such waivers are relatively common in franchise agreements, as they offer franchisors a degree of protection from large-scale litigation and potentially high legal costs.