What state law governs the Hardees Franchise Agreement for franchisees located in Illinois?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 1.A | The term is from the date of signing of the Development Agreement to the first to occur of: (1) the date that the last Franchised Restaurant required by the Development Schedule opens for business; or (2) the date the last Franchised Restaurant is required to be opened under the Development Schedule. |
| b. Renewal or extension of the | Not Applicable | |
| term | ||
| c. Requirements for you to | Not Applicable | |
| renew or extend | ||
| d. Termination by you | Not Applicable | |
| e. Termination by us without | Not Applicable | |
| cause | ||
| f. Termination by us with cause | Section 13 | We may terminate upon default, which includes, but is not limited to, remaining in default beyond any applicable cure period under any agreement with us or our affiliates, including the Franchise Agreement. |
| g. “Cause” defined-curable defaults | Section 13.A.(13) | You have 10 days to cure monetary defaults. You have 30 days to cure defaults other than those discussed in paragraph h. |
| h. “Cause” defined-non-curable defaults | Sections 13.A.(1)-(12) | Non-curable defaults include: failure to obtain written site acceptance on schedule; failure to open and operate the scheduled number of Franchised Restaurants; begin construction before receipt of fully-signed Franchise Agreement; insolvency; bankruptcy; material breach of covenants; transfer without our prior written consent; material misrepresentation; falsification of reports; felony convictions; default beyond cure period under other agreements with HR or its affiliates, under any real estate or |
| Provision | Section in Franchise Agreement | Summary |
| u. Dispute resolution by | Not Applicable | |
| arbitration or mediation | ||
| v. Choice of forum | Section 31.B. | Subject to applicable state law, you can only file suit where our principal offices are located; we may file suit in the jurisdiction where our principal offices are located; where you reside or do business; where the Franchised Restaurant is or was located; or where the claim arose. For Illinois franchisees, as provided in the Illinois Franchise Disclosure Act, any provision in the Franchise Agreement that designates jurisdiction in a forum outside of Illinois is void. |
| w. Choice of law | Section 31.A. | Subject to applicable state law, Tennessee law applies. For Illinois franchisees, as provided in the Illinois Franchise Disclosure Act, Illinois law governs your agreement. |
Source: Item 19 — Financial Performance Representations (FDD pages 69–71)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the Franchise Agreement for franchisees located in Illinois is governed by Illinois law. While the standard agreement specifies that Tennessee law applies, this is superseded by the Illinois Franchise Disclosure Act for franchisees operating in Illinois. This means that any legal disputes or interpretations of the franchise agreement will be subject to Illinois state law.
This is a significant benefit for Illinois franchisees, as it ensures that their franchise agreement is interpreted under the laws of their own state. This can provide a greater level of protection and understanding, as they are likely more familiar with Illinois law than Tennessee law. It also means that any legal proceedings would likely take place in Illinois, which could be more convenient and cost-effective for the franchisee.
Choice of law provisions are common in franchise agreements, as they provide clarity and predictability regarding the legal framework governing the relationship between the franchisor and franchisee. However, state franchise laws, like the Illinois Franchise Disclosure Act, can override these provisions to protect franchisees within their jurisdiction. Prospective Hardees franchisees in Illinois should be aware of this provision and consult with legal counsel to fully understand their rights and obligations under the franchise agreement.