What is the maximum liability of Hardees to a licensee for any reason and upon any cause of action under the agreement?

According to Hardees's 2025 Franchise Disclosure Document, the maximum liability of the licensor, which in this case is Hardees, to the licensee (franchisee) for any reason and upon any cause of action is limited to the amount paid to Hardees by the franchisee under the agreement during the 12-month period preceding the cause of action. This limitation applies to all causes of action, including breach of contract, breach of warranty, negligence, strict liability, misrepresentations, and other torts.

This means that if a Hardees franchisee has a dispute with Hardees, the most they can recover in damages is the amount they've paid to Hardees in the previous year. This could include franchise fees, royalty payments, or other required payments outlined in the franchise agreement. It is important to note that this limitation is comprehensive, covering various legal claims a franchisee might bring against Hardees.

This type of limitation of liability clause is relatively common in franchise agreements. It serves to protect Hardees from potentially large damage claims, capping their financial exposure to the fees they've received from the franchisee. Prospective franchisees should carefully consider this limitation and its potential impact on their ability to recover losses in case of a dispute with Hardees. Franchisees should consult with a legal professional to fully understand the implications of this clause and how it might affect their rights and remedies.