Under what circumstances is the Addendum to the Hardees Restaurant Franchise Agreement required for California franchisees executed?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum to the Hardee's Restaurant Franchise Agreement dated between Hardee's Restaurants LLC ("HR") and ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. 1. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of the franchise to Franchisee was made in the State of California; (B) Franchisee is a resident of the State of California; and/or (C) the Restaurant will be located or operated in the State of California. 2. The following sentences are added immediately before the last sentence of Section 16: Franchisee (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 Franchise Agreement. 4. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Addendum to the Hardee's Restaurant Franchise Agreement for California franchisees is required when the offer or sale of the franchise was made in California, the franchisee is a resident of California, and/or the restaurant will be located or operated in California. This addendum is entered into simultaneously with the execution of the Franchise Agreement and its provisions form an integral part of, and are incorporated into, the Franchise Agreement.
This requirement ensures that California franchisees are subject to specific legal considerations and protections under California law. One key provision included in the addendum is the express waiver of rights granted under Section 1542 of the California Civil Code, which relates to a general release not extending to unknown claims. This waiver means that franchisees are agreeing to release Hardees from claims they may not even be aware of at the time of signing the agreement.
Prospective Hardees franchisees in California should carefully review this addendum with legal counsel to fully understand its implications, particularly the waiver of rights under California Civil Code Section 1542. They should also be aware that the California Department of Financial Protection & Innovation has not reviewed or approved Hardees' website, and any complaints about the website's contents can be directed to that department.