factual

In the Hardees franchise agreement, if a court finds a provision unreasonable, does the franchisee agree to be bound by the maximum duty permitted by law that is subsumed within the terms of that provision?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

  • C. Franchisee expressly agrees to be bound by any promise or covenant imposing the maximum duty permitted by law that is subsumed within the terms of any provision of this Agreement, as though it were separately articulated in and made a part of this Agreement, that may result from striking from any of the provisions of this Agreement any portion or portions which a court may hold to be unreasonable and unenforceable in a final decision to which HR is a party, or from reducing the scope of any promise or covenant to the extent required to comply with such a court order.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, the franchisee expressly agrees to adhere to the maximum duty permitted by law that is incorporated within any provision of the franchise agreement. This applies even if a court deems a portion of that provision unreasonable or unenforceable in a final decision involving Hardees. This agreement ensures that the franchisee remains bound to the fullest extent legally possible, as if the maximum duty were explicitly written into the agreement.

This clause means that if a court reduces the scope of any promise or covenant within the agreement to comply with a court order, the franchisee is still bound by the maximum duty allowed by law. This could involve financial obligations, operational requirements, or any other aspect of the franchise agreement. The franchisee cannot argue that the reduced scope eliminates their responsibility up to the legal limit.

For a prospective Hardees franchisee, this provision underscores the importance of carefully reviewing the entire franchise agreement and understanding the potential implications of each clause. It is advisable to seek legal counsel to fully grasp the extent of the obligations and duties, especially those that might be subject to judicial interpretation. This clause is designed to protect Hardees's interests by ensuring franchisees remain compliant to the greatest extent permitted by law, even if specific terms are adjusted by a court.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.