What exhibit contains the guarantees from the CKE Securitization Entities to assume Hardees' duties and obligations under the franchise agreements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this disclosure document as Exhibit K are the audited combined consolidated financial statements of the CKE Securitization Entities (Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC and Hardee's Funding LLC), which comprise (1) the combined consolidated balance sheets as of January 27, 2025 and January 29, 2024, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements; and (2) the combined consolidated balance sheets as of January 29, 2024 and January 30, 2023, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements. Each of the CKE Securitization Entities (other than HR) has agreed absolutely and unconditionally to guarantee to assume our duties and obligations under the franchise agreements entered into by us, should we become unable to perform our duties and obligations. A copy of those guarantees are attached as part of Exhibit J to this disclosure document.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Exhibit J contains the guarantees from the CKE Securitization Entities to assume Hardees' duties and obligations under the franchise agreements. The CKE Securitization Entities include Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC, and Hardee's Funding LLC.
These entities have agreed to guarantee the assumption of Hardees' duties and obligations under the franchise agreements if Hardees is unable to perform them. This guarantee provides an added layer of security for franchisees, ensuring that even if Hardees faces financial difficulties, the obligations under the franchise agreements will still be met by these securitization entities.
Prospective franchisees should carefully review Exhibit J to understand the specific terms and conditions of these guarantees. This includes understanding the scope of the obligations covered, the conditions under which the guarantees would be triggered, and the financial strength of the CKE Securitization Entities providing the guarantees. This due diligence will help franchisees assess the level of protection these guarantees offer and make informed decisions about investing in a Hardees franchise.