Does Hardees assume any liability to the transferee if it consents to a Transfer and the transferee experiences financial difficulties?

According to Hardees's 2025 Franchise Disclosure Document, Hardees does not assume liability to the transferee if it consents to a transfer and the transferee subsequently experiences financial difficulties. This means that if Hardees approves the transfer of a franchise to a new owner, and that new owner later faces financial problems, Hardees is not responsible for those financial issues.

Hardees's decision to approve or deny a transfer is based on several factors, including the transferee's experience, financial resources, and the sales price of the franchise. Hardees evaluates whether the proposed transferee has sufficient experience in high-quality restaurant operations and the financial capacity to meet the obligations of the franchise agreement. They also assess whether the sales price of the franchise is reasonable enough to allow the transferee to successfully operate the restaurant and meet their financial obligations.

Furthermore, Hardees retains the right to communicate and counsel with both the developer (original franchisee) and the proposed transferee regarding any aspect of the proposed transfer, without incurring any liability. This allows Hardees to provide guidance and advice during the transfer process without being held responsible for the outcome of the transfer. This lack of liability extends both to consenting to a transfer that leads to financial difficulties for the transferee and to withholding consent, which could prevent the transfer altogether. This clause protects Hardees from potential legal claims related to transfer decisions and their financial consequences for the parties involved.