For Hardees franchises offered in Illinois, what law governs the Preliminary Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1. The provisions of this Addendum form an integral part of, and are incorporated into the Preliminary Agreement. This Addendum is being executed because the offer of the franchise to Applicant was made in the State of Illinois.
- 2. The following sentence is added to the end of Section 11.A.:
Notwithstanding the foregoing, Illinois law shall govern this Agreement.
3. The following sentence is added to the end of Section 11.B.:
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise-related agreement which designates jurisdiction or venue in a forum outside of Illinois is void with respect to any cause of action which otherwise is enforceable in Illinois.
4. The following sentences are added to the end of Section 11.C.:
Section 27 of the Illinois Franchise Disclosure Act provides that causes of action under the Act must be brought within the earlier of: 3 years of the violation, 1 year after the franchise applicant becomes aware of the underlying facts or circumstances or 90 days after delivery to the franchise applicant of a written notice disclosing the violation. In addition, Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act is void.
- 5. The provisions of this Addendum will be effective only to the extent that the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently of this Addendum.
- 6. Except as expressly modified by this Addendum, the Preliminary Agreement remains unmodified and in full force and effect.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, for franchises offered in Illinois, the Preliminary Agreement is governed by Illinois law. This is specified in the addendum to the Preliminary Agreement required for Illinois applicants.
This means that any disputes or interpretations of the Preliminary Agreement for Hardees franchises in Illinois will be subject to Illinois state law. This ensures that Illinois franchisees have the protections and rights afforded to them under Illinois law, regardless of any conflicting provisions that might be present in the standard franchise agreement.
Additionally, the addendum states that any provision in a franchise-related agreement that designates jurisdiction or venue outside of Illinois is void with respect to any cause of action enforceable in Illinois. However, the agreement may provide for arbitration to take place outside of Illinois. This protects the franchisee from having to travel to another state to resolve disputes.