What actions or convictions by a Hardees franchisee, Operating Principal, or 10% Owner can lead to termination of the franchise agreement?

According to Hardees's 2025 Franchise Disclosure Document, certain actions or convictions by a Hardees franchisee, their Operating Principal, any stockholder, member, partner, director or officer of the franchisee, any member of the Continuity Group, or any 10% Owner can lead to the termination of the franchise agreement.

Specifically, if any of these individuals are convicted of, or plead no contest to, a felony charge, a crime involving moral turpitude, or any other crime or offense that Hardees reasonably believes is likely to adversely affect the brand, its affiliates, or the Hardees system, the franchise agreement can be terminated. This clause gives Hardees broad discretion to terminate the agreement based on criminal activity or actions deemed detrimental to the brand's reputation.

This provision highlights the importance of maintaining a clean criminal record and avoiding actions that could be considered morally reprehensible for anyone involved in the ownership or operation of a Hardees franchise. Prospective franchisees should carefully consider this clause and ensure that all individuals associated with their franchise meet the required standards of conduct to avoid potential termination of the agreement.