What constitutes "Covered Equipment" for a Hardees franchise, and what happens when this equipment reaches its end of life?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2 "Covered Equipment" means Franchisee's approved point-of-sale system, back office computer and printer, as identified on attached Exhibit B, and any additional equipment identified on Exhibit B that has been approved by CKR for use with the Licensed Products and for use at the Franchised Restaurants. Any equipment currently used in the Franchised Restaurants that does not meet the Franchisor's current specifications and product description listed on Exhibit B will not be considered as Covered Equipment. As Covered Equipment reaches its end of life as set forth on Exhibit B, Franchisee will need to replace the equipment with the then current Franchisor approved equipment.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, "Covered Equipment" refers to the franchisee's approved point-of-sale (POS) system, back office computer, and printer, as identified in Exhibit B of the Software Support Agreement. It also includes any additional equipment listed on Exhibit B that Hardees has approved for use with the licensed software and at the franchised restaurant. Equipment currently in use that does not meet Hardees's current specifications and product descriptions on Exhibit B is not considered "Covered Equipment".
When the "Covered Equipment" reaches its end of life, as determined by Exhibit B, the franchisee is required to replace it with Hardees's then-current approved equipment. This implies that franchisees must stay updated with the franchisor's technology standards and be prepared to invest in new equipment as older systems become obsolete. CKE will not support equipment that has reached its end of life as accounted by CKE.
This requirement ensures that all Hardees locations maintain consistent technology standards, which can impact operational efficiency and customer experience. However, it also represents a potential ongoing cost for franchisees, who must budget for periodic equipment upgrades to remain compliant with the franchise agreement and maintain support services. Franchisees should carefully review Exhibit B to understand the expected lifespan of covered equipment and the potential costs associated with replacements.