What is the deadline for Hardees to exercise its option to purchase assets after the Hardees franchise agreement expires or terminates?

According to Hardees's 2025 Franchise Disclosure Document, Hardees has the option to purchase some or all of the assets used in the franchised restaurant upon the expiration or termination of the franchise agreement. Hardees can exercise this option by providing written notice to the franchisee within a specific timeframe.

The deadline for Hardees to exercise its option is up to 60 days after the later of two possible dates: either the effective date of the termination or expiration of the franchise agreement, or the date the franchisee ceases to operate the Hardees restaurant. This means that Hardees has a window of time, up to 60 days, to decide whether it wants to purchase the assets of the restaurant after the franchise agreement ends and/or the restaurant stops operating.

These assets include items such as leasehold improvements, equipment, vehicles, furnishings, fixtures, signs, inventory (non-perishable products, materials, and supplies), and potentially the real estate or lease for the restaurant location. This clause ensures that Hardees has the opportunity to take control of the physical assets of the restaurant if they choose to do so after the franchise agreement concludes.