Under what conditions is the Addendum to the Hardees Restaurant Development Agreement required for South Dakota franchisees executed?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE HARDEE'S RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR SOUTH DAKOTA FRANCHISEES
This Addendum to the between Hardee's Hardee's Restaurant Restaurants Development LLC Agreement ("HR") dated and execution of the Development Agreement. ("Developer") is entered into simultaneously with the 1. South Dakota. 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 South Dakota; (B) Developer is a resident of the State of South Dakota; and/or (C) part or all of the Development Territory is located in the State of 2. The following sentence is added to the end of Section 4: We will defer collection of the Development Fee until such time as we have fulfilled our pre opening obligations to you and you have opened your first Restaurant. 3. the Development Agreement. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in HR: HARDEE'S RESTAURANTS LLC Print Name: Danell Caron Vice President, Legal DEVELOPER: Print Name: Date:
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 for South Dakota franchisees is executed simultaneously with the Development Agreement under specific conditions. These conditions are when (A) the offer or sale of a franchise to the Developer was made in the State of South Dakota, (B) the Developer is a resident of the State of South Dakota, and/or (C) part or all of the Development Territory is located in the State of South Dakota.
This addendum becomes an integral part of the Development Agreement, meaning its provisions are fully incorporated and legally binding. It also stipulates that Hardees will defer collection of the Development Fee until they have fulfilled their pre-opening obligations and the franchisee has opened their first restaurant. This deferral provides a financial benefit to the franchisee, aligning the fee payment with the commencement of operations.
Prospective Hardees franchisees in South Dakota should carefully review this addendum with their legal counsel to fully understand their rights and obligations. The addendum modifies certain aspects of the standard Development Agreement to comply with South Dakota law and to protect the interests of franchisees operating within the state.