Under what conditions is the Addendum executed as an integral part of the Hardees Development Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 Illinois; (B) Developer is a resident of the State of Illinois; and/or (C) part or all of the Development Territory is located in the State of Illinois.
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 Development Agreement becomes an integral part of the Development Agreement under specific conditions related to the location and residency of the franchisee. This Addendum is executed simultaneously with the Development Agreement.
Specifically, the Addendum is required and becomes an integral part of the Development Agreement if (A) the offer or sale of a franchise to the Developer was made in a specific state such as South Dakota, California, or Illinois; (B) the Developer is a resident of one of those states; and/or (C) part or all of the Development Territory is located in one of those states. This ensures that franchisees operating in these states are subject to specific state laws and regulations that may differ from the standard franchise agreement.
For instance, the Illinois Addendum includes stipulations that Illinois law governs the agreement, and any provision designating jurisdiction or venue outside of Illinois is void with respect to causes of action enforceable in Illinois. Similarly, the California Addendum includes a waiver of rights under Section 1542 of the California Civil Code. These addenda modify specific sections of the Development Agreement to comply with state-specific franchise laws, ensuring that Hardees and its franchisees operate within the legal framework of the relevant state.
Prospective Hardees franchisees should carefully review any state-specific addenda to understand how these provisions affect their rights and obligations under the Development Agreement. It is also important to note that the provisions of the Addendum will be effective only to the extent that the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently of the Addendum.