What releases and covenants not to sue are Hardees franchisees required to execute as a condition of renewal?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee, all individuals who executed this Agreement and all guarantors of Franchisee's obligations shall have executed a general release and a covenant not to sue, in a form satisfactory to HR, of any and all claims against HR and its affiliates and their respective past and present officers, directors, managers, shareholders, members, agents and employees, in their corporate and individual capacities, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, and claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and HR or its affiliates and Franchisee's operation of the Franchised Restaurant, other Hardee's Restaurants operated by Franchisee and all other restaurants operated by Franchisee that are franchised by HR or its affiliates.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, franchisees, along with individuals who originally signed the franchise agreement and any guarantors, must execute a general release and a covenant not to sue as a condition of renewal. This release and covenant must be in a form satisfactory to Hardees.
The release covers any and all claims against Hardees, its affiliates, and their respective past and present officers, directors, managers, shareholders, members, agents, and employees, both in their corporate and individual capacities. This includes, but is not limited to, claims arising under federal, state, and local laws, rules, and ordinances. It also encompasses claims arising out of or relating to the franchise agreement itself, any other agreements between the franchisee and Hardees or its affiliates, and the franchisee's operation of the franchised restaurant. This extends to other Hardees restaurants operated by the franchisee and all other restaurants operated by the franchisee that are franchised by Hardees or its affiliates.
In essence, before a Hardees franchise agreement can be renewed, the franchisee must legally relinquish any right to sue Hardees over virtually any issue, with the specific exceptions outlined in section 19 regarding financial performance representations and franchise laws. This is a significant commitment and should be carefully considered with legal counsel, as it broadly protects Hardees from potential legal action by the franchisee.