Under what conditions is the Addendum to the Hardees Restaurant Franchise Agreement required for South Dakota franchisees executed?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum to the between Hardee's Restaurant Hardee's Franchise Restaurants LLC Agreement ("HR") dated and Franchise Agreement. ("Franchisee") is entered into simultaneously with the execution of the 1. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of the franchise to Franchisee was made in the State of South Dakota; (B) Franchisee is a resident of the State of South Dakota; and/or (C) the Franchised Restaurant will be located or operated in the State of South Dakota. 2. The following sentence is added to the end of Section 3.A.: opening obligations to you and you have opened your Restaurant. We will defer collection of the Initial Franchise Fee until such time as we have fulfilled our pre 3. Franchise Agreement. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the HR: HARDEE'S RESTAURANTS LLC Print Name: Danell Caron Vice President, Legal Print Name:
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 Franchise Agreement for South Dakota franchisees is executed under specific conditions related to the franchise offering and the franchisee's location or residency. This addendum is an integral part of the franchise agreement and is incorporated into it.
The addendum is required if any of the following conditions are met: (A) the offer or sale of the franchise was made in the State of South Dakota; (B) the franchisee is a resident of the State of South Dakota; and/or (C) the franchised restaurant will be located or operated in the State of South Dakota. These conditions ensure that South Dakota state laws and regulations are appropriately applied to the franchise agreement, protecting the franchisee's rights and interests within the state.
Furthermore, the addendum includes a clause regarding the initial franchise fee. Hardees will defer collection of the Initial Franchise Fee until such time as they have fulfilled their pre-opening obligations to the franchisee and the franchisee has opened their Restaurant. This deferral provides financial relief to the franchisee during the initial stages of establishing the restaurant. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the HR.