In the event of a Crisis Situation at a Hardees restaurant, what are the franchisee's immediate required actions?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If an event occurs at the Franchised Restaurant that may damage the Proprietary Marks, the System or the reputation of HR (collectively "Crisis Situation"), Franchisee shall: (1) immediately contact appropriate emergency care providers to assist it in curing the harm or injury; and (2) immediately inform HR by telephone of the Crisis Situation. Franchisee shall refrain from making any internal or external announcements (i.e., no communication with the news media) regarding the Crisis Situation (unless otherwise directed by HR or public health officials).
To the extent HR deems appropriate, in its sole and absolute discretion, HR or its designee may control the manner in which the Crisis Situation is handled by the parties, including, without limitation, conducting all communication with the news media and/or temporarily closing the Franchised Restaurant. The parties acknowledge that, in directing the management of any Crisis Situation, HR or its designee may engage the services of attorneys, experts, doctors, testing laboratories, public relations firms and those other professionals as it deems appropriate. Franchisee and its employees shall cooperate fully with HR or its designee in its efforts and activities in this regard and shall be bound by all further Crisis Situation procedures developed by HR from to time hereafter. The indemnification under Section 25 shall include all losses and expenses that may result from the exercise by HR or its designee of the management rights granted in this Section 32.G.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if a "Crisis Situation" occurs at a franchised restaurant that may damage the Proprietary Marks, the System, or the reputation of Hardees, the franchisee has specific immediate obligations. First, the franchisee must immediately contact appropriate emergency care providers to assist in curing the harm or injury. Second, the franchisee must immediately inform Hardees by telephone of the Crisis Situation.
Furthermore, the Hardees franchisee is required to refrain from making any internal or external announcements regarding the Crisis Situation, which includes no communication with the news media, unless otherwise directed by Hardees or public health officials. This restriction ensures that all communications are managed and controlled by Hardees to protect the brand's image and reputation during a sensitive event.
Hardees reserves the right, in its sole discretion, to control how the Crisis Situation is handled, including managing communications with the news media and temporarily closing the franchised restaurant. Hardees may also engage attorneys, experts, doctors, testing laboratories, public relations firms, and other professionals as deemed appropriate. The franchisee and its employees must fully cooperate with Hardees in these efforts and adhere to any further Crisis Situation procedures developed by Hardees. The franchisee is also responsible for indemnifying Hardees for all losses and expenses resulting from Hardees's management of the crisis.