What breaches of franchise agreements does Hardees allege Paradigm committed, leading to the Notice of Default and Termination?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
On April 15, 2025, Paradigm also filed a Complaint against HR seeking declaratory relief and alleging breach of contract / anticipatory repudiation and injunctive relief relating to a Notice of Default and Termination HR issued to Paradigm as a result of Paradigm's breaches of its franchise agreements. HR maintains that Paradigm is in breach of its franchise agreements and it has the right to enforce the termination of Paradigm's franchise agreements. This matter remains pending.
Source: Item 3 — Litigation (FDD pages 23–27)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees Restaurants, LLC ("HR") issued a Notice of Default and Termination to Paradigm Investment Group, LLC ("Paradigm") due to Paradigm's alleged breaches of their franchise agreements. Hardees maintains that Paradigm is in breach of its franchise agreements and that Hardees has the right to enforce the termination.
Paradigm responded by filing a Complaint against HR seeking declaratory relief and alleging breach of contract/anticipatory repudiation and injunctive relief. This legal action indicates a dispute over whether Paradigm actually violated the franchise agreements and whether Hardees had grounds to issue the termination notice. The lawsuit aims to get a court to declare the rights and obligations of each party under the franchise agreement.
Given that the matter is pending in court, the specific nature of Paradigm's alleged breaches is not detailed in this section of the FDD. A prospective franchisee should seek further clarification from Hardees regarding the specific breaches that Paradigm allegedly committed. Understanding the details of these alleged breaches would provide valuable insight into the types of issues that can lead to default and termination of a Hardees franchise agreement.