Under what conditions related to ownership in other Hardees franchised restaurants is a cross-guarantee required, and who must execute it?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee, all individuals who executed this Agreement and all guarantors of Franchisee's obligations shall have executed a general release and a covenant not to sue, in a form satisfactory to HR, of any and all claims against HR and its affiliates and their respective past and present officers, directors, managers, shareholders, members, agents and employees, in their corporate and individual capacities, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, and claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and HR or its affiliates and Franchisee's operation of the Franchised Restaurant, other Hardee's Restaurants operated by Franchisee and all other restaurants operated by Franchisee that are franchised by HR or its affiliates.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a general release and covenant not to sue must be executed by the franchisee, all individuals who executed the agreement, and all guarantors of the franchisee's obligations. This release covers any claims against Hardees and its affiliates, including their officers, directors, managers, shareholders, members, agents, and employees.
The claims include those arising under federal, state, and local laws, rules, and ordinances. It also encompasses claims related to the franchise agreement, any other agreements between the franchisee and Hardees or its affiliates, and the franchisee's operation of the franchised restaurant.
This extends to other Hardees Restaurants operated by the franchisee and all other restaurants operated by the franchisee that are franchised by Hardees or its affiliates. This requirement ensures that Hardees is protected from potential legal issues related to the franchisee's operations across all their Hardees franchises.