What is the scope of the general release provided by the Guarantor to Hardees Restaurants LLC?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
General Release.** Except as set forth in this Section 3, each Guarantor (if an individual, on behalf of him/herself and his/her heirs, representatives, successors and assigns, and if a business entity, on behalf of itself and its parent, subsidiaries and affiliates) (each a "Releasor" and collectively, "Releasors"), freely and without any influence, forever release and covenant not to sue HR, its parents, subsidiaries, affiliates, predecessors and successors and their respective past and present officers, directors, managers, shareholders, members, agents and employees, in their corporate and individual capacities (collectively, "HR Releasees"), from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "claims"), that any Releasor now owns or holds or may in the future own or hold, based on, arising out of or relating to, in whole or in part, any fact, event, conduct or omission occurring on or before the date of this Guarantee, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and claims arising out of, or relating to the Agreement and all other agreements between any Releasor and any HR Releasee, the sale of a franchise to any Releasor, the development of any Franchised Restaurant and the development and operation of all other restaurants operated by any Releasor that are or were franchised by HR or its parents, subsidiaries, affiliates or predecessors.
Each Guarantor (on behalf of the applicable Releasors) expressly agrees that fair consideration has been given by HR for this release and fully understands that this is a negotiated, complete and final release of all claims.
This release does not include a release of claims arising from representations in the Hardee's Franchise Disclosure Document provided to any Releasor in connection with the Agreement or any claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise for the Agreement as of the date of the Agreement (including without limitation the FTC Rule on Franchising (16 C.F.R.
Part 436).
- **4.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, the Guarantor provides a general release to Hardees Restaurants LLC (HR). This release covers any and all claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent, or suspected or unsuspected, that the Releasor (Guarantor) currently holds or may hold in the future.
The scope includes claims based on any fact, event, conduct, or omission occurring on or before the date of the guarantee. This encompasses claims arising under federal, state, and local laws, rules, and ordinances. It also includes claims for contribution, indemnity, and/or subrogation, as well as claims related to the Franchise Agreement and other agreements between the Releasor and HR Releasees. The release extends to claims arising from the sale of the franchise, the development of the Franchised Restaurant, and the development and operation of other restaurants franchised by HR or its affiliates.
However, the release does not apply to claims arising from representations made in the Hardee's Franchise Disclosure Document provided in connection with the Agreement. It also excludes claims arising under applicable state or federal franchise laws regulating the offer or sale of the franchise as of the date of the Agreement, including the FTC Rule on Franchising.