Does the Hardees franchise agreement allow for consequential, punitive, or exemplary damages in disputes between the franchisee and HR?

According to Hardees's 2025 Franchise Disclosure Document, the franchise agreement includes a mutual waiver regarding certain types of damages. Specifically, both Hardees and the franchisee waive, to the fullest extent permitted by law, any right to claim consequential, punitive, or exemplary damages against each other. This means that in the event of a dispute, neither party can seek these types of damages, and recovery is limited to actual damages sustained.

This waiver has significant implications for a prospective Hardees franchisee. It limits the potential financial recovery in case of a dispute with Hardees, preventing the franchisee from seeking damages beyond direct losses. For example, if Hardees breaches the agreement, the franchisee can only recover the actual financial losses they incurred, not additional punitive damages intended to punish Hardees for their actions.

Additionally, the Hardees franchise agreement includes a waiver of the right to participate in class action lawsuits and the right to a jury trial. This further restricts a franchisee's legal options in the event of a dispute, potentially reducing their leverage and increasing the cost of pursuing legal action against Hardees. Franchisees should carefully consider these limitations and consult with legal counsel to understand the full implications before signing the agreement.