What is the sole remedy available to the Indemnified Party regarding Hardees' negligent acts or omissions, excluding claims arising from fraud, criminal activity, or willful misconduct?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
The previous sentence states the sole liability of the Indemnifying Party, and the sole remedy of the Indemnified Party, with respect to any third-party claim arising out of the Indemnifying Party's negligent acts or omissions (other than claims arising from fraud, criminal activity or willful misconduct).
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the sole remedy available to the Indemnified Party regarding the Indemnifying Party's negligent acts or omissions is explicitly stated within the indemnification clause. This remedy applies specifically to third-party claims, excluding those arising from fraud, criminal activity, or willful misconduct.
In practical terms, this means that if a third party brings a claim against the Indemnified Party due to the Indemnifying Party's negligence, the Indemnified Party's recourse is limited to the indemnification outlined in the agreement. This clause defines the extent of liability the Indemnifying Party assumes for its negligent actions.
This limitation is significant for a prospective Hardees franchisee because it clarifies the scope of protection they have against potential liabilities arising from negligence. However, it's crucial to note the exceptions for fraud, criminal activity, or willful misconduct, as these are not covered by this limitation and may expose the franchisee to additional liabilities.