What are the conditions a Hardees franchisee must 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 related to 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 align with the current image of new Hardee's restaurants at the time of renewal. These renovations may involve structural changes, remodeling, redecoration, and modifications to existing improvements to meet the updated brand standards.

In addition to meeting the brand's image standards, the franchisee must also ensure the ongoing upkeep of the restaurant. This includes maintaining the restaurant and all its elements, such as furniture, fixtures, equipment, interior and exterior signage, building appearance, lighting, landscaping, and parking lot, in first-class condition and repair. The franchisee is responsible for performing necessary remodeling, redecorating, refurbishing, and repairs as required by Hardees. This also includes addressing maintenance and replacements as prescribed by Hardees, such as periodic painting, parking lot resurfacing, roof repairs, and replacing obsolete or worn-out items.

These requirements ensure that all Hardees restaurants maintain a consistent and appealing image, which is crucial for brand recognition and customer satisfaction. By mandating these updates and maintenance standards, Hardees aims to keep its franchises competitive and prevent deterioration or obsolescence. Franchisees should be prepared to invest in these updates to align with the brand's evolving standards and maintain a high-quality dining environment.