For Hardees, what minimum equity ownership interest in the Developer is required for the Development Principal, and under what condition can this requirement be modified?

According to Hardees's 2025 Franchise Disclosure Document, the Development Principal must maintain a minimum of 10% equity ownership interest in the Developer. If the Developer is a limited partnership, the Development Principal must have at least a 10% equity ownership in the Developer's general partner.

However, Hardees, at its sole discretion, can modify this equity ownership requirement. This modification provides Hardees with flexibility in assessing potential developers and allows them to consider factors beyond strict equity ownership.

This equity requirement does not apply if the Developer was a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between the Developer and Hardees. This exception recognizes that publicly-held entities have different ownership structures and reporting requirements than privately-held companies, making the equity requirement less relevant.