Under what conditions will the provisions of the Addendum to the Preliminary Agreement for Illinois applicants be effective for a Hardees franchise?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1. The provisions of this Addendum form an integral part of, and are incorporated into the Preliminary Agreement. This Addendum is being executed because the offer of the franchise to Applicant was made in the State of Illinois.
- 2. The following sentence is added to the end of Section 11.A.:
Notwithstanding the foregoing, Illinois law shall govern this Agreement.
3. The following sentence is added to the end of Section 11.B.:
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise-related agreement which designates jurisdiction or venue in a forum outside of Illinois is void with respect to any cause of action which otherwise is enforceable in Illinois.
4. The following sentences are added to the end of Section 11.C.:
Section 27 of the Illinois Franchise Disclosure Act provides that causes of action under the Act must be brought within the earlier of: 3 years of the violation, 1 year after the franchise applicant becomes aware of the underlying facts or circumstances or 90 days after delivery to the franchise applicant of a written notice disclosing the violation. In addition, Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act is void.
- 5. The provisions of this Addendum will be effective only to the extent that the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently of this Addendum.
- 6. Except as expressly modified by this Addendum, the Preliminary Agreement remains unmodified and in full force and effect.
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 Preliminary Agreement for Illinois applicants is considered an integral part of the Preliminary Agreement. This addendum is required because the franchise offer to the applicant was made in Illinois. The addendum modifies specific sections of the Preliminary Agreement to ensure compliance with the Illinois Franchise Disclosure Act. Specifically, Illinois law governs the agreement, and any provision designating jurisdiction or venue outside Illinois is void concerning actions enforceable in Illinois. The addendum also addresses the statute of limitations for causes of action under the Illinois Franchise Disclosure Act.
For a Hardees franchisee in Illinois, this means that certain protections and stipulations under Illinois law are incorporated into their agreement. The provisions of the addendum are only effective if the jurisdictional requirements of the Illinois Franchise Disclosure Act are independently met, regardless of the addendum itself. This ensures that the franchisee's rights under Illinois law are upheld.
In practical terms, this addendum ensures that Illinois franchisees have the benefit of Illinois law, particularly regarding legal venues and time limits for claims. However, it's important to note that the addendum's effectiveness hinges on meeting the jurisdictional requirements of the Illinois Franchise Disclosure Act, meaning the franchisee must independently qualify under Illinois law for these protections to apply.