Does the general release in the Hardees agreement include a release of claims arising from representations in the Hardee's Franchise Disclosure Document?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
This release does not include a release of claims arising from representations in the Hardee's Franchise Disclosure Document provided to Developer in connection with this Agreement or any claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise for this Agreement as of the date of this Agreement (including without limitation the FTC Rule on Franchising (16 C.F.R. Part 436).
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the general release in the agreement does not include a release of claims arising from representations in the Hardee's Franchise Disclosure Document (FDD). This means that a Hardees franchisee retains the right to sue Hardees regarding any misrepresentations or misleading information contained within the FDD. This is a standard protection for franchisees, ensuring they can hold the franchisor accountable for the accuracy of the information provided during the franchise sales process.
Specifically, the release also does not include claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise. This encompasses, without limitation, the FTC Rule on Franchising (16 C.F.R. Part 436). This ensures that franchisees do not waive their rights to pursue legal remedies under franchise laws designed to protect them from unfair or deceptive practices.
This protection is crucial for prospective Hardees franchisees as it allows them to rely on the information provided in the FDD when making their investment decision. If the FDD contains inaccurate or misleading information, franchisees retain the right to seek legal recourse against Hardees, safeguarding their investment and ensuring fair dealing in the franchise relationship.