Does the release in the Hardees Guarantee and Assumption of Franchisee's Obligations cover claims arising under state or federal franchise laws?

According to the 2025 Hardees Franchise Disclosure Document, the general release and the Guarantee and Assumption of Franchisee's Obligations do not include a release of claims arising from representations in the Hardee's Franchise Disclosure Document or any claims arising under applicable state or federal franchise laws regulating the offer or sale of the franchise. This explicitly includes the FTC Rule on Franchising (16 C.F.R. Part 436). This means that while franchisees are giving up certain rights to sue Hardees, they retain the right to bring claims related to franchise law violations.

This protection is fairly standard in franchising, as franchise laws are designed to protect franchisees from deceptive or unfair practices by franchisors. The FDD itself is a key disclosure document required by these laws, so it makes sense that claims arising from misrepresentations in the FDD are not released. Similarly, franchisees generally cannot waive their rights under state and federal franchise laws.

For a prospective Hardees franchisee, this is a significant benefit. It means that if Hardees violates franchise laws in the offer or sale of the franchise, or if the FDD contains false or misleading information, the franchisee retains the right to sue Hardees for damages. This provides an important check on the franchisor's conduct and helps to ensure that franchisees are treated fairly.

However, it is important to note that this protection is not unlimited. The release likely covers many other types of claims, such as those arising from the operation of the restaurant or other business disputes. Franchisees should carefully review the release and consult with an attorney to understand the full scope of their rights and obligations.