What action must Hardees take upon termination of the Licensed Program and Content agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement, Licensor will disconnect Licensee from the Licensed Program and Content and deactivate passwords, as applicable. Licensee shall cease
using the Licensed Program and Content and promptly return to Licensor all copies of all such materials and all other Confidential Information in its possession or control. Licensee shall delete all copies of such materials residing in on-line or off-line computer memory, and destroy all copies of such materials that also incorporate Confidential Information. Licensor shall be entitled to enter the Franchised Restaurants to repossess and remove the Licensed Program and Content, and any other Confidential Information. Licensee shall, within 5 days from the effective date of the termination, certify to Licensor, in writing by an officer or director, that all copies of the Licensed Program and Content have been returned, deleted or destroyed. In the event of termination of the License granted by this Agreement for fewer than all Franchised Restaurants, Licensee shall comply with the foregoing with respect to the applicable Franchised Restaurants. Notwithstanding forgoing, upon request Licensee shall have the right to receive from Licensor such readily accessible reports or information containing data of Licensee's completed training modules (or other available data) with the understanding that Licensor shall not have the right to incur any additional expenses to provide such data to Licensee.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, upon termination of the Licensed Program and Content agreement, Hardees will disconnect the licensee from the Licensed Program and Content and deactivate passwords, if applicable. This means Hardees will cut off the franchisee's access to any digital resources, online platforms, or software provided under the agreement. This step ensures that the franchisee no longer has access to proprietary information or tools after the agreement ends.
Additionally, Hardees is entitled to enter the franchised restaurants to repossess and remove the Licensed Program and Content, and any other Confidential Information. This allows Hardees to physically retrieve any materials or data related to the program, ensuring that the franchisee does not continue to use or possess them after termination.
Furthermore, the FDD states that upon request, the franchisee shall have the right to receive from Hardees such readily accessible reports or information containing data of Licensee's completed training modules (or other available data) with the understanding that Hardees shall not have the right to incur any additional expenses to provide such data to Licensee. This ensures that the franchisee can obtain necessary data, such as training records, without imposing additional costs on Hardees.