Does CKE Restaurants Holdings, Inc. (CKR) guarantee Hardees' obligations under any Development Agreement or Franchise Agreement?

According to Hardees' 2025 Franchise Disclosure Document, CKE Restaurants Holdings, Inc. (CKR) does not guarantee Hardees' obligations under any Development Agreement or Franchise Agreement. CKR's financial statements are included in the FDD for informational purposes only. CKR is not a party to any Development Agreement or Franchise Agreement that Hardees signs with franchisees.

However, the FDD also states that each of the CKE Securitization Entities (other than HR) has agreed to guarantee Hardees' obligations under the franchise agreements. These CKE Securitization Entities include Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC and Hardee's Funding LLC. These entities have agreed to assume Hardees' duties and obligations should Hardees become unable to perform them. Copies of these guarantees are included as part of Exhibit J to the FDD.

In essence, while the parent company CKR does not directly guarantee Hardees' obligations, several subsidiary entities within the CKE Securitization Entities do provide a guarantee. This arrangement offers a degree of financial security to franchisees, as these entities are contractually bound to step in if Hardees is unable to meet its obligations under the franchise agreement. Prospective franchisees should carefully review Exhibit J to fully understand the scope and limitations of these guarantees.