What is the cure period for monetary defaults under the Hardees Development Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 1.A | The term is from the date of signing of the Development Agreement to the first to occur of: (1) the date that the last Franchised Restaurant required by the Development Schedule opens for business; or (2) the date the last Franchised Restaurant is required to be opened under the Development Schedule. |
| b. Renewal or extension of the | Not Applicable | |
| term | ||
| c. Requirements for you to | Not Applicable | |
| renew or extend | ||
| d. Termination by you | Not Applicable | |
| e. Termination by us without | Not Applicable | |
| cause | ||
| f. Termination by us with cause | Section 13 | We may terminate upon default, which includes, but is not limited to, remaining in default beyond any applicable cure period under any agreement with us or our affiliates, including the Franchise Agreement. |
| g. “Cause” defined-curable defaults | Section 13.A.(13) | You have 10 days to cure monetary defaults. You have 30 days to cure defaults other than those discussed in paragraph h. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 64–69)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee has a specific timeframe to correct monetary defaults under the Development Agreement. Specifically, Hardees allows a 10-day period to cure monetary defaults. If the franchisee fails to correct the monetary default within this 10-day period, Hardees has grounds to terminate the Development Agreement.
This cure period is a critical aspect of the franchise agreement, as it defines the franchisee's rights and obligations in the event of a financial shortfall. It is important to note that this 10-day cure period applies specifically to monetary defaults. Other types of defaults, as outlined in paragraph h of Section 13.A.(1)-(12), may have different cure periods or may be considered non-curable, leading to immediate termination.
Prospective Hardees franchisees should be fully aware of these terms and conditions, ensuring they understand the implications of failing to meet their financial obligations within the stipulated timeframe. It is also important to understand what constitutes a 'monetary default' under the agreement to avoid any potential misunderstandings or disputes with Hardees.