Where in the Hardees Franchise Agreement can information about post-termination obligations be found?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
14. OBLIGATIONS ON TERMINATION OR EXPIRATION
Upon termination or expiration of this Agreement:
- A. Developer shall have no further right to develop or open Franchised Restaurants in the Development Territory, except that Developer shall be entitled to complete and open a Franchised Restaurant for which a Commitment Agreement has been fully executed. Termination or expiration of this Agreement shall not affect Developer's right to continue to operate Franchised Restaurants that were open and operating as of the date this Agreement terminated or expired.
- B. The limited exclusive rights granted Developer in the Development Territory shall terminate and HR shall have the right to operate or license others to operate Hardee's Restaurants anywhere in the Development Territory.
- C. Developer promptly shall return to HR all materials and information furnished by HR or its affiliates, except materials and information furnished with respect to a Franchised Restaurant for which there is an effective commitment agreement or a Franchised Restaurant which is open and operating pursuant to an effective franchise agreement.
- D. Developer and all persons and entities subject to the covenants contained in Section 12 shall continue to abide by those covenants and shall not, directly or indirectly, take any action that violates those covenants.
Source: Item 9 — Franchisee's Obligations (FDD pages 42–43)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, the obligations of the franchisee upon termination or expiration of the agreement are detailed in Section 14 of Item 23.
Specifically, upon termination or expiration, the developer (franchisee) loses the right to develop or open further Hardees restaurants in the designated territory, with an exception for restaurants under a fully executed Commitment Agreement. However, the franchisee retains the right to operate existing restaurants that were open and operating at the time of termination or expiration.
Furthermore, the limited exclusive rights granted to the developer in the territory are terminated, allowing Hardees to operate or license others within that territory. The franchisee is required to return all materials and information provided by Hardees, except those related to restaurants with effective commitment agreements or operating under an effective franchise agreement. Finally, the franchisee and related parties must continue to adhere to the covenants outlined in Section 12, preventing any actions that violate those covenants.