What is the Hardees franchisee's obligation regarding end-of-life equipment as determined by CKE?

According to Hardees' 2025 Franchise Disclosure Document, a franchisee is obligated to replace end-of-life equipment with equipment that is currently approved by the franchisor, CKE. CKE will not provide support for equipment that has reached its end of life, as determined by CKE. This requirement is further detailed in the OLO Authorized Operator Agreement.

The OLO Authorized Operator Agreement specifies that as 'Covered Equipment' reaches its end of life, the franchisee is required to replace it with equipment that CKE currently approves. 'Covered Equipment' includes the franchisee's approved point-of-sale system, back office computer and printer, and any additional equipment approved by CKR (CKE Restaurants, Inc.) for use with the Licensed Products and at the franchised restaurants. Equipment currently in use that does not meet CKE's current specifications will not be considered Covered Equipment.

This means a Hardees franchisee must stay up-to-date with CKE's approved equipment list and be prepared to invest in replacements as existing equipment ages out. The franchisee bears the cost of these replacements to maintain CKE's standards and ensure compatibility with CKE's support systems. This can represent a significant ongoing expense for the franchisee.

Prospective Hardees franchisees should carefully review Exhibit B of the OLO Authorized Operator Agreement, which lists the Covered Equipment and how CKE determines the end of life for covered equipment. Understanding the replacement cycle and associated costs is crucial for financial planning.