In which states does the rider to the Hardees Franchise Disclosure Document apply?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE FOLLOWING STATES ONLY: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, WISCONSIN
The following language is hereby added to the Franchise Disclosure Document if you are a resident of one of the states listed in the heading of this Rider (the "Applicable Franchise Registration State") or a nonresident who is acquiring franchise rights permitting the location of one or more Hardee's Restaurants in the Applicable Franchise Registration State:
"No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise."
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a specific rider is added to the Franchise Disclosure Document for franchisees in certain states. This rider applies only to franchisees who are residents of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, or to non-residents acquiring franchise rights to locate a Hardees restaurant in one of those states.
The rider includes a provision that protects franchisees by preventing them from waiving claims under state franchise law or disclaiming reliance on statements made by Hardees or its representatives. This means that any agreement signed by the franchisee cannot waive their rights to sue for fraud or disclaim reliance on statements made by the franchisor.
This type of rider is common in franchise agreements to ensure compliance with state-specific franchise laws, which vary significantly. The rider essentially overrides any conflicting terms in the standard franchise agreement to provide franchisees in these states with the full protection of their local franchise laws. Prospective Hardees franchisees should carefully review this rider to understand their rights and protections under the franchise agreement within their specific state.