If a party other than the Hardees developer defaults on an agreement related to a franchised restaurant, how long does the developer have to cure the default after receiving notice?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (12) Developer, the Development Principal, any member of the Continuity Group, any 10% Owner or any Affiliated Entity remains in default beyond the applicable cure period: (a) under any other agreement with HR or its affiliates; (b) under any real estate lease, equipment lease, or financing instrument relating to a Franchised Restaurant; or (c) with any vendor or supplier to a Franchised Restaurant; provided that if the default is not by Developer, Developer is given written notice of the default and 30 days to cure said default.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a Hardees developer has 30 days to cure a default if it is related to a real estate lease, equipment lease, financing instrument, or agreement with a vendor or supplier, and the default was committed by a party other than the developer. The developer must receive written notice of the default to begin the 30-day cure period.
This means that if, for example, a landlord fails to maintain the property as required by the lease agreement, and this constitutes a default, the Hardees developer would have 30 days from the date they receive written notice to resolve the issue. This could involve working with the landlord to correct the problem, finding a new location, or taking other steps to mitigate the impact of the default.
It is important to note that this cure period only applies if the default is by a party other than the Hardees developer. If the developer themselves is in default, the cure period may be different, as outlined in other sections of the Development Agreement. Additionally, the specific terms of the lease, financing instrument, or other agreement may also affect the cure period.