Under the Hardees guarantee, is protest and notice of default to any party with respect to the indebtedness or 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 the 2025 Hardees FDD, guarantors waive protest and notice of default to any party regarding indebtedness or nonperformance of obligations under the guarantee. This means that Hardees is not required to formally notify the guarantors of any default or protest any non-payment related to the debt.
This waiver is part of a broader set of conditions where guarantors relinquish certain rights and protections. Specifically, guarantors also 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 any right to require Hardees to first bring an action against the franchisee or any other person before pursuing the guarantors.
These waivers are significant because they streamline the process for Hardees to pursue guarantors in the event of a default by the franchisee. The guarantors' liability becomes more direct and immediate, as Hardees is not obligated to exhaust other remedies or provide specific notices before seeking recourse from the guarantors.
For a prospective Hardees franchisee, this highlights the importance of understanding the full scope of the guarantee and the implications of waiving these rights. Guarantors should be fully aware that they are potentially liable for the franchisee's debts and obligations without the typical legal protections of notice and protest.