What are the conditions regarding defaults that a Hardees franchisee must meet to be eligible for renewal?

According to Hardees's 2025 Franchise Disclosure Document, a franchisee must meet specific conditions regarding defaults to be eligible for renewal. The franchisee must not be in default under the Franchise Agreement or any other agreements with Hardees or its affiliates. Furthermore, they cannot be in default beyond the applicable cure period under any real estate lease, equipment lease, or financing instrument related to the franchised restaurant. The franchisee also needs to ensure they are not in default beyond the applicable cure period with any vendor or supplier to the franchised restaurant.

For the 12 months before the date of the franchisee's renewal notice and the 12 months before the expiration of the initial term, the franchisee must not have been in default beyond the applicable cure period under the Franchise Agreement or any other agreements with Hardees or its affiliates. This indicates that Hardees places a significant emphasis on the franchisee's compliance with all agreements and financial obligations, not only at the time of renewal but also consistently throughout the preceding year.

These conditions highlight the importance of maintaining good standing with Hardees, landlords, equipment lessors, lenders, vendors, and suppliers. A prospective franchisee should carefully review all agreements and ensure they have the financial and operational capacity to meet all obligations to avoid jeopardizing their renewal option. Paying close attention to cure periods and promptly addressing any defaults is crucial for a Hardees franchisee seeking to extend their franchise term.