Does Hardees guarantee any of the franchisee's obligations?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
Guarantee To Be Bound by Certain Obligations.** Guarantors hereby personally and unconditionally guarantee to HR and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement or at law or in equity, that each will be personally bound by the restrictions contained in Section 20 of the Agreement.
- **2.
Guarantee and Assumption of Franchisee's Obligations.** Guarantors hereby: (A) guarantee to HR and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement or at law or in equity, that Franchisee and any assignee of Franchisee's interest under the Agreement shall: (1) punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and (2) punctually pay all other monies owed to HR and/or its affiliates; (B) agree to be personally bound by each and every provision in the Agreement, including, without limitation, the provisions of Sections 20 and 25; and (C) agree to be personally liable for the breach of each and every provision in the Agreement.
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the franchise agreement includes a section where guarantors may be required to guarantee a franchisee's obligations. Specifically, individuals identified as 'Guarantors' in the Renewal Addendum to the Hardee's Restaurant Franchise Agreement may guarantee the franchisee's obligations under the agreement. This addendum is entered into simultaneously with the Franchise Agreement.
The guarantors agree to be personally bound by the restrictions outlined in Section 20 of the agreement, which likely pertains to specific operational or financial obligations. They also guarantee that the franchisee will punctually pay and perform every undertaking, agreement, and covenant in the agreement, as well as any other monies owed to Hardees or its affiliates. This guarantee extends for the term of the agreement and beyond, as provided in the agreement or by law.
Furthermore, the guarantors agree to be personally bound by every provision in the agreement, including Sections 20 and 25, and agree to be personally liable for any breaches of the agreement. This indicates that Hardees seeks to ensure that there are parties beyond the franchisee who are responsible for the franchisee's adherence to the terms of the franchise agreement, providing an additional layer of security for Hardees.