What is the deadline for Hardees to exercise its option to purchase the assets after the purchase price has been determined?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Within 10 days after the Purchase Price has been determined, HR may exercise its option to purchase the Assets by so notifying Franchisee in writing ("HR's Purchase Notice").
The Purchase Price shall be paid in cash or cash equivalents at the closing of the purchase ("Closing"), which shall take place no later than 60 days after the date of HR's Purchase Notice.
From the date of HR's Purchase Notice until Closing:
(1) Franchisee shall operate the Franchised Restaurant and maintain the Assets in the usual and ordinary course of business and maintain in full force all insurance policies required under this Agreement; and
(2) HR shall have the right to appoint a manager, at HR's expense, to control the dayto-day operations of the Franchised Restaurant and Franchisee shall cooperate, and instruct its employees to cooperate, with the manager appointed by HR.
Alternatively, HR may require Franchisee to close the Franchised Restaurant during such time period without removing any Assets from the Franchised Restaurant.
- G. For a period of 60 days after the date of HR's Purchase Notice ("Due Diligence Period"), HR shall have the right to conduct such investigations as it deems necessary and appropriate to determine: (1) the ownership, condition and title of the Assets; (2) liens and encumbrances on the Assets; (3) environmental and hazardous substances at or upon the Franchised Location; and (4) the validity of contracts and liabilities inuring to HR or affecting the Assets, whether contingent or otherwise.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees has a limited time to exercise its option to purchase a franchisee's assets after the purchase price has been determined. Specifically, Hardees has 10 days after the purchase price is determined to notify the franchisee in writing of its intent to purchase the assets. This notification is referred to as "HR's Purchase Notice."
Following HR's Purchase Notice, the closing of the purchase, where the Purchase Price is paid, must occur no later than 60 days from the date of HR's Purchase Notice. During the period between HR's Purchase Notice and the closing, the franchisee is obligated to continue operating the Hardees restaurant in the usual course of business and maintain all required insurance policies.
Additionally, during this period, Hardees has the right to appoint a manager, at its own expense, to oversee the day-to-day operations of the restaurant. Alternatively, Hardees may require the franchisee to close the restaurant during this period without removing any assets. Hardees also has a 60-day "Due Diligence Period" after HR's Purchase Notice to conduct investigations regarding the assets' ownership, condition, liens, environmental matters, and contract validity.