How did the Middle East conflict, beginning in October 2023, affect Hardees' international franchised restaurants?

According to Hardees's 2025 Franchise Disclosure Document, the military conflict in the Middle East that began in October 2023 impacted certain of Hardees' international markets. As a result, the same-store sales at international franchised Hardees restaurants were affected to varying degrees within the Middle East. This means that some Hardees locations in the Middle East experienced a decline in sales compared to the previous year. The extent of the impact varied from location to location.

This situation presents a potential risk for prospective Hardees franchisees looking to invest in international markets, particularly in the Middle East. The FDD indicates that a continued conflict could further harm Hardees' business and financial results. This suggests that franchisees in the region may face ongoing challenges in maintaining or growing their sales.

It is important to note that the FDD does not specify the exact magnitude of the impact on same-store sales or which specific markets were most affected. A prospective franchisee should conduct thorough due diligence, including speaking with existing franchisees in the Middle East, to understand the specific risks and challenges in those markets. They should also inquire about Hardees' plans to support franchisees in the region during the conflict and any strategies to mitigate the negative impact on sales.