Under what circumstances is the Addendum to the Hardees Restaurant Development Agreement required for California franchisees executed?

This Addendum to the Hardee's Restaurant Development Agreement dated between Hardee's Restaurants LLC ("HR") and ("Developer") is entered into simultaneously with the execution of the Development Agreement. 1. The provisions of this Addendum form an integral part of, and are incorporated into the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of California; (B) Developer is a resident of the State of California; and/or (C) part or all of the Development Territory is located in the State of California. 2. The following sentences are added immediately before the last sentence of Section 11: Developer (on behalf of all Releasors) and all guarantors also expressly agree that, with respect to this release, any and all rights granted under Section 1542 of the California Civil Code are expressly waived. That Section reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor." 3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement. 4. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)