If a Hardees developer is a resident of Maryland, is the Addendum to the Development Agreement applicable?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
O THE HARDEE'S RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR ILLINOIS FRANCHISEES**
| This | Addendum | to | the | Hardee's | Restaurant | Development | Agreement | dated | |
|---|---|---|---|---|---|---|---|---|---|
| between | Hardee's | Restaurants | LLC | ("HR") | and | ||||
| ("Developer") is entered into simultaneously with the execution of | |||||||||
| the Development Agreement. |
- 1. The provisions of this Addendum form an integral part of, and are incorporated into the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of Illinois; (B) Developer is a resident of the State of Illinois; and/or (C) part or all of the Development Territory is located in the State of Illinois.
- 2. The following sentence is added to the end of Section 22.A.:
Notwithstanding the foregoing, Illinois law shall govern this Agreement.
3. The following sentence is added to the end of Section 22.B.:
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise 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 sentence is added to the end of Section 22.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 after the violation, 1 year after the franchisee becomes aware of the underlying facts or circumstances, or 90 days after delivery to the franchisee of a written notice disclosing the violation.
- 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. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement.
- 7. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
[Signatures on following page.]
HR: HARDEE'S RESTAURANTS LLC
Print Name: Danell Caron Vice President, Legal DEVELOPER: Print Name:
ADDENDUM TO THE HARDEE'S RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR ILLINOIS FRANCHISEES
| This | Addendum | to | the | Hardee's | Restaurant | Franchise | Agreement | dated | |
|---|---|---|---|---|---|---|---|---|---|
| between | Hardee's | Restaurants | LLC | ("HR") | and | ||||
| ("Franchisee") is entered into simultaneously | |||||||||
| with the execution of the Franchise Agreement. |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, an addendum to the Hardees Restaurant Development Agreement is required for Maryland franchisees. This addendum is integrated into the Development Agreement and is executed because the franchise offer or sale was made in Maryland, the developer resides in Maryland, or the development territory is in Maryland.
The addendum modifies several sections of the Development Agreement to comply with the Maryland Franchise Registration and Disclosure Law. Specifically, it addresses the deferral of fees, claims, and releases. It stipulates that initial and development fees are deferred until pre-opening obligations are met and the first franchise opens. Furthermore, it clarifies that any general release signed by the developer does not waive claims under the Maryland Franchise Registration and Disclosure Law.
The addendum also specifies that a franchisee can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and any such claims must be brought within three years of the franchise grant. The provisions of the addendum are effective only if the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are independently met. The Development Agreement remains in full effect except as expressly modified by this addendum.