What conditions must a Hardees franchisee satisfy regarding reimage and deferred maintenance requirements to renew their franchise agreement?

According to Hardees's 2025 Franchise Disclosure Document, to renew a franchise agreement, a franchisee must meet specific conditions regarding the restaurant's image and maintenance. The franchisee is required to make necessary capital expenditures to renovate and modernize the franchised restaurant. This includes conforming to the latest interior and exterior designs, decor, color schemes, furnishings, and equipment standards that reflect the current image of new Hardees restaurants. These renovations also involve any structural changes, remodeling, redecoration, and modifications needed to align with the brand's current standards at the time of renewal.

In addition to meeting the brand's image standards, the franchisee must maintain the restaurant in first-class condition and repair. This includes ongoing remodeling, redecorating, refurbishing, and general repairs. The franchisee must also promptly address any maintenance, repairs, and replacements as directed by Hardees, which may include periodic interior and exterior painting, parking lot resurfacing, roof repairs, and replacement of outdated signage, floor coverings, furnishings, equipment, and decor.

These requirements ensure that all Hardees restaurants maintain a consistent and appealing image, which is crucial for attracting customers and maintaining brand standards. Franchisees should be prepared to invest in these updates to meet the renewal criteria and uphold the brand's reputation. Failing to comply with these reimage and maintenance standards could result in Hardees denying the franchise renewal.