Does the Guarantee and Assumption of Franchisee's Obligations extend beyond the term of the Hardees Franchise Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ADDENDUM to the Hardee's Restaurant Franchise Agreement dated as of ("Franchise Agreement") by and between Hardee's Restaurants LLC ("HR") and ("Franchisee") and and (collectively, "Guarantors") is entered into simultaneously with the Franchise Agreement.
RECITALS
- D. Those individuals identified above as "Guarantors", if any, have guaranteed Franchisee's obligations under the Franchise Agreement.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Based on the 2025 Hardees Franchise Disclosure Document, the Renewal Addendum to the Hardee's Restaurant Franchise Agreement states that individuals identified as "Guarantors" have guaranteed the Franchisee's obligations under the Franchise Agreement.
However, the document does not explicitly state whether the Guarantee and Assumption of Franchisee's Obligations extends beyond the term of the Hardees Franchise Agreement. The Renewal Addendum indicates that the Guarantors guarantee the franchisee's obligations, but the duration of this guarantee is not specified within the provided excerpts.
A prospective Hardees franchisee should seek clarification from Hardees regarding the duration and scope of the guarantee. Specifically, it is important to understand if the guarantee extends beyond the initial or any renewal term of the franchise agreement and what specific obligations are covered during and after the term.