How does the Hardees Development Fee in Item 5 relate to the development obligations outlined in Item 9?

According to Hardees's 2025 Franchise Disclosure Document, Item 5 details the fees, including the development fee, while Item 9 outlines the franchisee's obligations under both the Franchise Agreement and the Development Agreement. The table in Item 9 cross-references Item 5 in relation to fees, indicating that the development fee is one of the financial obligations a franchisee must meet.

Specifically, Item 9 lists 'Fees' as an obligation, referencing sections in both the Franchise Agreement (FA) and Development Agreement (DA), as well as Items 5 and 6 of the disclosure document. This means that the requirements for paying fees, including the development fee described in Item 5, are part of the franchisee's contractual obligations. The development fee is directly tied to the franchisee's commitment to develop and open Hardees restaurants according to the schedule and terms outlined in the Development Agreement.

Furthermore, the FDD mentions a Development Incentive Program. Franchisees participating in this program may receive a reduction or waiver of the initial franchise fee, as detailed in Item 5, and reduced royalty and APO fees, as detailed in Item 6. This incentive is tied to specific development obligations, such as opening restaurants at travel center or gas and convenience locations by specific dates, as outlined in the Development Agreement. Therefore, the development fee and any potential incentives are directly linked to the franchisee's adherence to the development obligations specified in the agreements.