What is the cure period for non-monetary defaults under the Hardees development agreement, and what conditions apply to extending that cure period?
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, a developer has 30 days to correct a failure or refusal to comply with any provision of the development agreement or any requirement of the Hardees system if the default is non-monetary. This begins after receiving written notice of the default. For monetary defaults, the cure period is only 10 days.
If the non-monetary default cannot be corrected within the initial 30-day period, Hardees may grant the developer additional time to correct the default, not exceeding 90 days in total. However, this extension is conditional. The developer must begin taking the necessary actions to correct the default during the initial 30-day cure period.
Furthermore, the developer must diligently and in good faith pursue those actions to completion to be eligible for the extended cure period. Hardees emphasizes that any failure to materially comply with the requirements of the agreement or to carry out its terms in good faith will constitute a default. If a developer receives two or more default notices within a 12-month period, Hardees can issue a termination notice for the next default without offering an opportunity to remedy it.