Is Hardees permitted to assign the Olo agreement to any third party?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4. Assignment. Neither party may assign or transfer any part of this Agreement without the prior written consent of the other Party except that this Agreement may be assigned without consent: (a) to a person or entity who acquires all or substantially all of the assigning Party's assets, stock or business, and (b) to any affiliate or subsidiary of a Party; in each case, so long as the assignee accepts the obligations hereunder in writing. Any purported assignment of rights or obligations, except as expressly permitted herein, will be null and void. Subject to the foregoing, this Agreement will bind and inure to the benefit of the parties and their respective permitted successors and assigns.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the Olo agreement outlines specific conditions regarding assignment. Generally, neither party can assign or transfer any part of the agreement without prior written consent from the other party. However, there are exceptions to this rule.
The agreement can be assigned without consent to a person or entity who acquires all or substantially all of the assigning party's assets, stock, or business. Additionally, assignment is permitted to any affiliate or subsidiary of a party. In both of these cases, the assignee must accept the obligations of the agreement in writing.
Any attempt to assign rights or obligations under the Olo agreement that does not comply with these explicitly permitted conditions will be considered null and void. Subject to these stipulations, the agreement is binding and extends to the benefit of the parties and their respective permitted successors and assigns. This means that while Hardees' ability to assign the Olo agreement is restricted, there are pathways for permissible assignment under specific circumstances, ensuring continuity of the agreement under new ownership or affiliated entities.