For Hardees franchisees residing in or acquiring franchise rights in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, can a signed statement waive claims under state franchise law, including fraud in the inducement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is a resident of one of the states listed in the heading of this Section 23.I (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of a Franchised Restaurant in the Applicable Franchise Registration State, then the following applies:
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.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees residing in or acquiring franchise rights in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin cannot waive claims under state franchise law via a signed statement. This includes claims related to fraud in the inducement.
This protection means that if a Hardees franchisee in these states believes they were misled or defrauded into signing the franchise agreement, they retain the right to pursue legal action, regardless of any statement they may have signed to the contrary. This is a significant benefit for franchisees, as it prevents Hardees from using waivers to shield themselves from liability for misrepresentations or deceptive practices.
This provision ensures that the franchisee's rights under state franchise laws are upheld and cannot be contracted away. The FDD explicitly states that this provision supersedes any other term in any document executed in connection with the franchise, reinforcing the importance of this protection for franchisees in the specified states.