For Hardees franchisees residing in or planning to operate in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, can they waive claims under applicable state franchise law, including fraud in the inducement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a resident of one of the states listed in the heading of this Section 32.I (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of the 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 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees residing in or planning to operate a Hardees restaurant in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, receive specific protections under the franchise agreement.
Specifically, if a franchisee is a resident of one of these states or a non-resident acquiring franchise rights for a Hardees location in one of these states, no signed statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law. This explicitly includes claims related to fraud in the inducement.
This provision in the Hardees franchise agreement also ensures that franchisees in these states cannot disclaim reliance on statements made by Hardees, its franchise sellers, or anyone acting on their behalf. This protection supersedes any other conflicting terms in any document executed in connection with the franchise agreement, reinforcing the franchisee's rights under state franchise laws.