Under what conditions is the Addendum mentioned in this section considered an integral part of the Hardees Franchise Agreement?

According to Hardees's 2025 Franchise Disclosure Document, the addendum to the Hardees Restaurant Franchise Agreement becomes an integral part of the agreement under specific conditions related to the location and residency of the franchisee or developer. For California, the addendum is integral if the franchise offer or sale was made in California, the franchisee is a resident of California, or the restaurant will be located or operated in California. Similarly, for South Dakota, the addendum applies if the offer or sale occurred in South Dakota, the franchisee is a resident there, or the restaurant will be located or operated in South Dakota. For Minnesota, the addendum to the Development Agreement is integral if the offer or sale of a franchise to the Developer was made in the State of Minnesota; the Developer is a resident of the State of Minnesota; and/or part or all of the Development Territory is located in the State of Minnesota. For Illinois, the addendum to the Preliminary Agreement is integral if the offer of the franchise to Applicant was made in the State of Illinois. These addenda modify specific sections of the franchise agreement to comply with state laws.

These stipulations ensure that Hardees franchises comply with the specific legal requirements of different states. For instance, the California addendum includes a waiver of rights under Section 1542 of the California Civil Code, while the Illinois addendum addresses jurisdiction and venue limitations under the Illinois Franchise Disclosure Act. The Minnesota addendum addresses financial assurances required by the Minnesota Department of Commerce. These modifications are crucial for protecting both the franchisee and Hardees by ensuring adherence to local regulations.

Prospective Hardees franchisees should pay close attention to these addenda, as they can significantly impact their rights and obligations. The addenda often modify key sections of the franchise agreement, such as those related to termination, dispute resolution, and waivers of liability. Understanding these state-specific provisions is essential for making an informed decision about investing in a Hardees franchise. Franchisees should consult with legal counsel to fully understand the implications of these addenda in their specific state.