What is the deadline for a Hardees franchisee to notify HR in writing after the commencement of any action, suit, or proceeding that may adversely affect the operation or financial condition of the franchisee or the franchised restaurant?

According to Hardees' 2025 Franchise Disclosure Document, a franchisee must notify HR (Hardees Restaurants LLC) in writing within 5 days after the commencement of any action, suit, or proceeding, or the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of the franchisee or the franchised restaurant. This requirement ensures that Hardees is promptly informed of any legal or regulatory issues that could impact the franchisee's ability to operate the restaurant or maintain its financial stability.

This notification requirement allows Hardees to assess the potential impact of such actions on the brand and the franchise system as a whole. It enables Hardees to take appropriate steps to protect its interests, which may include providing support to the franchisee, intervening in the legal proceedings, or taking other measures to mitigate any potential damage to the Hardees brand or reputation.

For a prospective Hardees franchisee, this means being diligent in monitoring any legal or regulatory issues that may arise and promptly reporting them to Hardees within the specified timeframe. Failure to do so could result in penalties or other adverse consequences under the franchise agreement. This requirement highlights the importance of maintaining open communication with Hardees and adhering to the terms of the franchise agreement.