What actions must a Hardees franchisee take to discontinue the use of Proprietary Marks upon termination or expiration of the franchise agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Franchisee and all persons and entities subject to the covenants contained in Section 20 shall continue to abide by those covenants and shall not, directly or indirectly, take any action that violates those covenants.
E. Franchisee immediately shall discontinue all use of the Proprietary Marks in connection with the Franchised Restaurant and of any and all items bearing the Proprietary Marks; remove the Proprietary Marks from the Franchised Restaurant and from clothing, signs, materials, motor vehicles and other items owned or used by Franchisee in the operation of the Franchised Restaurant (unless HR directs Franchisee to temporarily refrain from doing so while HR determines if it will exercise its option under Section 23); cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks (including telephone directory listings); and take such action as may be necessary to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, a franchisee must take several immediate actions to discontinue the use of Hardees' Proprietary Marks upon termination or expiration of the franchise agreement. These actions are designed to protect Hardees' brand identity and ensure a clean break between the franchisee and the Hardees system.
Specifically, the franchisee must immediately cease all use of the Proprietary Marks in connection with the franchised restaurant. This includes removing the Proprietary Marks from the restaurant itself, as well as from any clothing, signs, materials, motor vehicles, and other items used in the operation of the restaurant. The only exception to this is if Hardees directs the franchisee to temporarily refrain from doing so while Hardees determines whether to exercise its option to purchase the restaurant.
Additionally, the franchisee is required to cancel all advertising for the franchised restaurant that contains the Proprietary Marks, including telephone directory listings. They must also take any necessary action to cancel any filings or registrations for the franchised restaurant that include any Proprietary Marks. Furthermore, the franchisee and all related parties are obligated to continue abiding by the covenants outlined in Section 20 of the franchise agreement, which restricts them from taking any action that violates those covenants.