What state's laws govern the Hardees franchise agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
A. This Agreement and any claim or controversy arising out of, or relating to, rights and obligations of the parties under this Agreement and any other claim or controversy between the parties shall
be governed by and construed in accordance with the laws of the State of Tennessee without regard to conflicts of laws principles. Nothing in this Section is intended, or shall be deemed, to make any Tennessee law regulating the offer or sale of franchises or the franchise relationship applicable to this Agreement if such law would not otherwise be applicable.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the franchise agreement is governed by the laws of Tennessee. Specifically, any claims or controversies arising from the agreement will be construed in accordance with Tennessee law, without regard to its conflict of laws principles. This means that if there are disputes regarding the franchise agreement, Tennessee law will be applied to resolve them.
This clause is important for prospective Hardees franchisees because it establishes the legal framework within which the franchise relationship operates. Franchisees should be aware that any legal disputes will be subject to Tennessee law, regardless of where their Hardees restaurant is located. This could have implications for how legal proceedings are conducted and what legal precedents are considered.
It is fairly common in franchising for the franchise agreement to specify a particular state's laws to govern the agreement. This provides clarity and predictability for both the franchisor and the franchisee. However, franchisees should consult with a legal professional to understand the specific implications of Tennessee law on their franchise agreement, especially if they are located in a different state.