Does Hardees guarantee any of the franchisee's notes, leases, or obligations?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
CKR's financial statements are being provided for disclosure purposes only. CKR is not a party to any Development Agreement or Franchise Agreement that we sign with franchisees, nor does CKR guarantee our obligations under any Development Agreement or Franchise Agreement that we sign with franchisees.
Neither HR's receipt of the lease or sublease nor any requirement that Franchisee enter into a written modification to the lease or sublease constitutes a warranty or representation by HR of any kind, express or implied, as to the lease or sublease's fairness or suitability or as to Franchisee's ability to comply with its terms, and HR does not assume any liability or responsibility to Franchisee or to any third parties due to its receipt and review of the lease or sublease.
Franchisee agrees that no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, affiliate, controlling party, entity under common control, ownership or management, vendor, service provider, agent, attorney or representative of HR will have any liability for: (1) any obligations or liabilities of HR relating to or arising from this Agreement; (2) any claim against HR based on, in respect of, or by reason of the relationship between Franchisee and HR; or (3) any claim against HR based on any alleged unlawful act or omission of HR. This provision does not include a release of claims arising from representations in the Hardee's Franchise Disclosure Document provided to Franchisee 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 (including without limitation the FTC Rule on Franchising (16 C.F.R. Part 436)).
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, CKE is not a party to any Development Agreement or Franchise Agreement that Hardees signs with franchisees, nor does CKE guarantee Hardees' obligations under any Development Agreement or Franchise Agreement that Hardees signs with franchisees. This means that Hardees franchisees should not expect CKE to guarantee Hardees' obligations to them.
Additionally, Hardees' FDD states that neither Hardees' receipt of the lease or sublease nor any requirement that Franchisee enter into a written modification to the lease or sublease constitutes a warranty or representation by HR of any kind, express or implied, as to the lease or sublease's fairness or suitability or as to Franchisee's ability to comply with its terms, and HR does not assume any liability or responsibility to Franchisee or to any third parties due to its receipt and review of the lease or sublease. This clarifies that Hardees' review of a franchisee's lease does not create any liability for Hardees regarding the lease's terms or the franchisee's ability to meet them.
Furthermore, the Hardees FDD states that no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, affiliate, controlling party, entity under common control, ownership or management, vendor, service provider, agent, attorney or representative of HR will have any liability for: (1) any obligations or liabilities of HR relating to or arising from this Agreement; (2) any claim against HR based on, in respect of, or by reason of the relationship between Franchisee and HR; or (3) any claim against HR based on any alleged unlawful act or omission of HR. This provision does not include a release of claims arising from representations in the Hardee's Franchise Disclosure Document provided to Franchisee 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 (including without limitation the FTC Rule on Franchising (16 C.F.R. Part 436)). This indicates that Hardees does not extend its own liability to other parties.