Under what condition will the provisions of the Addendum be effective for a Hardees franchise?

According to Hardees's 2025 Franchise Disclosure Document, the effectiveness of the addendum's provisions depends on meeting specific jurisdictional requirements outlined in the franchise laws of certain states. For instance, regarding the Minnesota franchise, the addendum's provisions are effective only if the jurisdictional requirements of the Minnesota Franchise Act and its regulations are independently satisfied, irrespective of the addendum itself. Similarly, for Illinois, the addendum's provisions are effective only if the jurisdictional requirements of the Illinois Franchise Disclosure Act are independently met. A similar condition applies for Maryland, where the addendum is effective only if the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently of the addendum.

These stipulations mean that the addendum's clauses will only be enforced if they align with the existing franchise laws of the relevant state. This ensures that franchisees are protected by state laws, and Hardees cannot use the addendum to circumvent those protections. The phrase "independently of this Addendum" suggests that the jurisdictional requirements must be satisfied regardless of what the addendum states.

For a prospective Hardees franchisee, this condition is crucial because it reinforces the importance of understanding the franchise laws in their specific state. It means that the addendum cannot override state laws designed to protect franchisees. Franchisees should consult with a legal professional to ensure full compliance with local regulations and to understand their rights and obligations under both the franchise agreement and the applicable state laws. This also highlights the need for Hardees to ensure its franchise agreements and addenda are fully compliant with the franchise laws of each state in which it operates.