Does the release in the Hardees Guarantee and Assumption of Franchisee's Obligations cover claims arising from the Franchise Disclosure Document?

According to Hardees's 2025 Franchise Disclosure Document, the general release provided by the franchisee (or Releasor) does not extend to claims arising from representations made in the Hardee's Franchise Disclosure Document (FDD). This means that even if a franchisee signs a broad release, they retain the right to pursue claims against Hardees related to misrepresentations or omissions in the FDD. This protection also extends to claims arising under applicable state or federal franchise laws, including the FTC Rule on Franchising.

This provision is significant for prospective Hardees franchisees as it safeguards their ability to hold Hardees accountable for the accuracy and completeness of the information provided in the FDD. The FDD is a critical document that outlines the terms of the franchise agreement, potential risks, and the obligations of both parties. Without this exception, franchisees could inadvertently waive their rights to sue if they later discover that the FDD contained misleading or false information.

The inclusion of this clause is fairly standard in franchise agreements, as franchise laws often require franchisors to provide accurate and comprehensive information to potential franchisees. By explicitly excluding FDD-related claims from the general release, Hardees acknowledges its responsibility to provide truthful disclosures and ensures that franchisees have recourse if these disclosures are found to be deficient. This helps to maintain a level of trust and transparency in the franchise relationship.