What is the deadline for HR to exercise its step-in rights following the expiration or termination of the Hardees lease or franchise agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR may exercise its step-in rights by giving written notice to the Landlord at any time following such expiration or termination of the Lease or Franchise Agreement up until 30 days after the later of: (1) the effective date of termination or expiration of the Lease or Franchise Agreement; or (2) the date Tenant ceases to operate the Restaurant
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, HR (presumably Hardees Restaurants) has the option to take over the tenant's (franchisee's) rights and obligations under the lease upon the expiration or termination of the lease or franchise agreement.
HR can exercise these step-in rights by providing written notice to the landlord. The deadline for HR to exercise these rights is up to 30 days after the later of two possible dates: either the effective date of the termination or expiration of the lease or franchise agreement, or the date the tenant ceases to operate the Hardees restaurant.
This clause protects Hardees's interests by allowing them to maintain control of the restaurant location even if a franchisee's lease or franchise agreement ends. It ensures Hardees can continue operations at that location, either by assigning the lease to a new franchisee or operating the restaurant themselves. This is a fairly common practice in franchising, especially for brick and mortar concepts, as location is a critical factor for success.