Under what circumstances is CKR, the franchisor for Hardees, not liable for loss or damage?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3 Force Majeure. CKR shall not be liable for any loss or damage due to: (a) delays caused by any act of God, strike, lock-out or other industrial disturbance, war (declared or undeclared), riot, epidemic, fire or other catastrophe, act of any government or other third party; (b) food spoilage or loss of business; or (c) any other cause not within its control.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, CKR, as the franchisor, outlines specific circumstances under which it will not be held liable for any loss or damage incurred by the franchisee. These circumstances are categorized under the concept of 'Force Majeure,' which includes events beyond CKR's control.
CKR is not liable for delays caused by acts of God, such as natural disasters, or other uncontrollable events like strikes, lock-outs, industrial disturbances, declared or undeclared war, riots, epidemics, fires, or actions taken by any government or third party. Additionally, CKR is not liable for food spoilage or any loss of business that a Hardees franchisee may experience.
Essentially, this clause protects CKR from liability for events that are outside of its direct control, ensuring that the franchisee bears the risk for such occurrences. This is a fairly standard clause in franchise agreements, allocating risk between the franchisor and franchisee. Prospective Hardees franchisees should carefully consider this allocation of risk and ensure they have adequate insurance coverage to protect against potential losses from these types of events.