Under the Hardees guarantee, is notice of demand for payment of any indebtedness waived by the guarantors?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Each of the undersigned waives: (1) acceptance and notice of acceptance by HR of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (4) any right he may have to require that an action be brought against Franchisee or any other person as a condition of liability; (5) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guarantee by the undersigned; (6) any law or statute which requires that HR make demand upon, assert claims against or collect from Franchisee or any others, foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any others prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guarantee; (7) any and all other notices and legal or equitable defenses to which he may be entitled; and (8) any and all right to have any legal action under this Guarantee decided by a jury.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, guarantors waive notice of demand for payment of any indebtedness. Specifically, the general terms and conditions applicable to the guarantee include a waiver by each guarantor of notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed. This means that Hardees is not required to notify the guarantors that the franchisee has failed to pay or perform their obligations before seeking payment from the guarantors.
This waiver is significant for prospective Hardees franchisees because it places a greater responsibility on the guarantors. They are essentially agreeing to be immediately liable for the franchisee's debts and obligations without needing to be informed of the default first. This could have serious financial implications for the guarantors, as they may be required to pay without prior warning.
In addition to waiving the notice of demand, the guarantors also waive acceptance and notice of acceptance by Hardees of the undertakings, protest and notice of default to any party, any right to require that an action be brought against the franchisee, and all rights to payments and claims for reimbursement or subrogation. They also waive any law or statute that requires Hardees to make a demand upon, assert claims against, or collect from the franchisee before taking action against the guarantors. This comprehensive waiver underscores the extent of the guarantors' obligations and the limited defenses available to them.