What specific rights does each guarantor waive regarding the Hardees guarantee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Each of the undersigned waives: (1) acceptance and notice of acceptance by HR of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (4) any right he may have to require that an action be brought against Franchisee or any other person as a condition of liability; (5) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guarantee by the undersigned; (6) any law or statute which requires that HR make demand upon, assert claims against or collect from Franchisee or any others, foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any others prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guarantee; (7) any and all other notices and legal or equitable defenses to which he may be entitled; and (8) any and all right to have any legal action under this Guarantee decided by a jury.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the guarantor waives several rights to provide assurance that the franchisee meets its financial and operational obligations.
The guarantor waives the right to require Hardees to take action against the franchisee or any other person before pursuing the guarantor. This means Hardees can seek payment or performance directly from the guarantor without first exhausting other options. The guarantor also waives the right to receive notices related to acceptance of the guarantee, demands for payment, or default by any party. This streamlines the process for Hardees to enforce the guarantee.
Additionally, the guarantor gives up rights to reimbursement or subrogation from the franchisee if the guarantor fulfills obligations under the guarantee. They also waive any legal defenses or notices they might otherwise be entitled to, including the right to a jury trial in any legal action related to the guarantee.
These waivers are designed to protect Hardees by ensuring the guarantee is straightforward and enforceable, reducing potential legal hurdles and delays in recovering any losses. Prospective Hardees franchisees should carefully consider the implications of these waivers before agreeing to act as a guarantor, as they significantly limit the guarantor's rights and defenses.