Is a Hardees franchisee able to terminate the franchise agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| d. Termination by you | Not Applicable | |
| e. Termination by us without | Not Applicable | |
| cause | ||
| f. Termination by us with cause | Section 21 | We may terminate upon default, which includes, but is not limited to, remaining in default beyond any applicable cure period under any agreement with us or our affiliates, including any Development Agreement. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 64–69)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee is not able to terminate the franchise agreement. The table within Item 17 of the FDD outlines various provisions related to the franchise agreement, including termination conditions. Under the section "Termination by you" it states "Not Applicable" meaning that the franchisee does not have the option to terminate the franchise agreement.
However, Hardees as the franchisor, retains the right to terminate the franchise agreement under certain conditions. These conditions generally involve a default on the part of the franchisee, which includes failing to meet obligations outlined in any agreement with Hardees or its affiliates, including any Development Agreement.
It is important for a prospective Hardees franchisee to understand that the franchise agreement cannot be terminated by them, but can be terminated by Hardees if the franchisee does not meet the obligations of the franchise agreement.