Under the Hardees guarantee, is notice of nonperformance of any obligations 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, the guarantors waive notice of nonperformance of any obligations under the guarantee. This means that Hardees is not required to notify the guarantors if the franchisee fails to meet their obligations.
Specifically, the guarantors waive acceptance and notice of acceptance by Hardees of the undertakings, notice of demand for payment of any indebtedness or nonperformance of any obligations, and protest and notice of default to any party with respect to the guaranteed indebtedness or nonperformance. This comprehensive waiver strengthens Hardees's position by removing the requirement to provide guarantors with specific notifications or demands related to the franchisee's non-compliance.
This waiver is part of a broader set of conditions where guarantors also waive rights to require action against the franchisee, rights to reimbursement or subrogation, and any legal or equitable defenses. The guarantee ensures that Hardees can directly pursue the guarantors for the franchisee's obligations without needing to exhaust other remedies first. This is a standard practice in franchising to ensure the financial stability and performance of franchisees, as it provides an additional layer of security for the franchisor.