If a Hardees franchisee loses possession of the Franchised Location due to their own fault, can Hardees terminate the agreement without a cure period?

According to Hardees's 2025 Franchise Disclosure Document, Hardees can terminate the franchise agreement without providing an opportunity to cure if the franchisee loses possession of the franchised location due to their own fault or failure to extend the lease through the initial term of the agreement. This is a significant point for prospective franchisees to consider.

This provision emphasizes the importance of maintaining control of the restaurant location. If a Hardees franchisee's actions or inactions lead to losing the location, Hardees can immediately terminate the agreement. This could occur, for example, if the franchisee fails to pay rent, violates lease terms, or neglects to renew the lease on time.

For a prospective Hardees franchisee, this clause underscores the need for careful management of the lease and property-related responsibilities. Franchisees should ensure they have a solid plan for managing their lease obligations and maintaining a positive relationship with their landlord to avoid jeopardizing their franchise agreement. This also highlights the importance of understanding all terms and conditions within the franchise agreement to ensure full compliance and avoid potential termination.