For Hardees franchisees in North Dakota, does the requirement to consent to the jurisdiction of Tennessee courts, as stated in the Franchise Agreement, apply?

According to Hardees's 2025 Franchise Disclosure Document, the requirement for franchisees in North Dakota to consent to the jurisdiction of Tennessee courts, as stipulated in the Franchise Agreement, does not apply. The FDD states that this requirement is specifically waived for North Dakota franchisees and is considered deleted from both the Disclosure Document and the Franchise Agreement. This is due to the North Dakota Franchise Investment Law.

This means that any legal disputes arising from the franchise agreement within North Dakota will be governed by North Dakota law and will be subject to the jurisdiction of North Dakota courts, rather than Tennessee courts. This provision offers a significant benefit to Hardees franchisees in North Dakota, as they will not be required to travel to Tennessee for legal proceedings or be subject to laws outside of their state.

This protection is further reinforced by an addendum to the Franchise Agreement required for North Dakota franchisees. This addendum explicitly states that the provisions form an integral part of the Franchise Agreement and are executed specifically because the franchise is offered or sold in North Dakota, the franchisee is a resident of North Dakota, and/or the franchised restaurant will be located or operated in North Dakota. This addendum reinforces that North Dakota law will govern any dispute, and any attempt to enforce choice of law from another state may not be enforceable under the North Dakota Franchise Investment Law.