What specific obligations of the Hardees Developer are guaranteed by the Guarantors, including payment and performance?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
**2.
Guarantee and Assumption of Developer's Obligations.** Guarantors hereby: (A) guarantee to HR and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement or at law or in equity, that Developer and any assignee of Developer's interest under the Agreement shall: (1) punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and (2) punctually pay all other monies owed to HR and/or its affiliates; (B) agree to be personally bound by each and every provision in the Agreement, including, without limitation, the provisions of Sections 12 and 16; and (C) agree to be personally liable for the breach of each and every provision in the Agreement.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Guarantors play a crucial role in ensuring the Developer's obligations are met. The Guarantors guarantee that the Developer will punctually pay and perform every undertaking, agreement, and covenant outlined in the Development Agreement. This includes ensuring all monies owed to Hardees and its affiliates are paid on time.
Furthermore, the Guarantors agree to be personally bound by every provision in the Development Agreement, including restrictions related to post-termination obligations and confidentiality. They also agree to be personally liable for any breaches of these provisions. This means that if the Developer fails to meet their obligations, Hardees can seek recourse directly from the Guarantors.
The Guarantors also waive certain rights that could protect them from liability. This includes waiving the right to require Hardees to first take action against the Developer before pursuing the Guarantors, as well as waiving rights to reimbursement or subrogation from the Developer. This ensures that Hardees can directly and immediately pursue the Guarantors for any failures in payment or performance by the Developer, providing Hardees with a direct line of financial and legal recourse should the Developer default on their commitments.