For Hardees, what is the cure period allowed for a party that breaches a material provision of the agreement before termination takes effect?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (13) Developer fails or refuses to comply with any other provision of this Agreement or any requirement of the Hardee's System and does not correct the failure or refusal within 30 days (10 days for monetary defaults) after receiving written notice of default. Except for monetary defaults, if the default cannot be corrected within 30 days, Developer shall have such additional time to correct the default as reasonably required (not to exceed 90 days) provided that Developer begins taking the actions necessary to correct the default during the 30-day cure period and diligently and in good faith pursues those actions to completion. Developer will be in default under this Section 13.A.(13) for any failure to materially comply with any of the requirements imposed by this Agreement, the Development Guide or otherwise in writing, or to carry out the terms of this Agreement in good faith.
If Developer has received 2 or more notices of default pursuant to this Section 13.A.(13) within the previous 12 months, HR shall be entitled to send Developer a notice of termination upon Developer's next default under this Section 13.A.(13) in that 12-month period without providing Developer an opportunity to remedy that default.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if a developer fails to comply with any provision of the agreement or Hardee's system requirements, they have 30 days to correct the failure after receiving written notice. However, for monetary defaults, the cure period is only 10 days.
If the default, excluding monetary defaults, cannot be corrected within 30 days, the developer may have additional time, not exceeding 90 days, to correct the default. This extension is granted only if the developer begins taking corrective actions during the initial 30-day cure period and diligently pursues those actions to completion in good faith.
However, if the developer receives two or more default notices within a 12-month period, Hardees has the right to send a termination notice for the next default without providing an opportunity to remedy it. This means repeated failures to comply with the agreement can lead to immediate termination without a chance to correct the issue. Prospective Hardees franchisees should be aware of these cure periods and the consequences of repeated defaults, ensuring they have systems in place to maintain compliance and address any issues promptly to avoid termination.