What is a Hardees franchisee required to do immediately upon discovering any prohibited use or disclosure of Confidential Information?

According to Hardees's 2025 Franchise Disclosure Document, a franchisee is required to notify CKR immediately upon discovering any prohibited use or disclosure of confidential information. Additionally, the franchisee must fully cooperate with CKR to help them regain possession of the confidential information and prevent any further prohibited use or disclosure.

This obligation highlights the importance Hardees places on protecting its proprietary information and trade secrets. Franchisees are essentially the front line of defense in ensuring that sensitive business data, operational methods, and other confidential details remain secure. The requirement to immediately notify CKR underscores the need for franchisees to be vigilant and proactive in identifying and reporting any potential breaches of confidentiality.

For a prospective Hardees franchisee, this means establishing clear protocols and training programs for employees to safeguard confidential information. It also means being prepared to act swiftly and decisively in the event of a suspected breach, including promptly informing Hardees and assisting in any investigation or recovery efforts. Failure to comply with these confidentiality obligations could have serious consequences, potentially leading to legal action or termination of the franchise agreement.