Following termination of a Hardees franchise, what actions must the franchisee take regarding the Proprietary Marks?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Franchisee immediately shall discontinue all use of the Proprietary Marks in connection with the Franchised Restaurant and of any and all items bearing the Proprietary Marks; remove the Proprietary Marks from the Franchised Restaurant and from clothing, signs, materials, motor vehicles and other items owned or used by Franchisee in the operation of the Franchised Restaurant (unless HR directs Franchisee to temporarily refrain from doing so while HR determines if it will exercise its option under Section 23); cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks (including telephone directory listings); and take such action as may be necessary to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, a franchisee must take specific actions regarding the Proprietary Marks upon termination of the franchise agreement. The franchisee must immediately discontinue all use of the Proprietary Marks in connection with the Franchised Restaurant. This includes stopping the use of the marks on any and all items bearing the Proprietary Marks.
Furthermore, the franchisee is required to remove the Proprietary Marks from the Franchised Restaurant itself, as well as from clothing, signs, materials, motor vehicles, and any other items the franchisee owns or uses in the operation of the restaurant. An exception exists if Hardees directs the franchisee to temporarily refrain from removing the marks while Hardees determines whether it will exercise its option to take over the location. The franchisee must also cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks, including telephone directory listings.
Finally, the franchisee must take any action necessary to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks. These steps ensure that the franchisee no longer represents themselves as associated with the Hardees brand after the termination of the agreement and that all rights to the Proprietary Marks revert fully to Hardees.