What minimum equity ownership interest must the Operating Principal have in the Hardees franchisee, or its general partner if the franchisee is a limited partnership?

According to Hardees's 2025 Franchise Disclosure Document, the Operating Principal must maintain a minimum equity ownership. Specifically, the Operating Principal is required to have at least a 10% equity ownership interest in the Hardees franchisee. If the franchisee is structured as a limited partnership, the Operating Principal must hold at least a 10% equity ownership interest in the franchisee's general partner.

This requirement ensures that the Operating Principal has a vested interest in the success of the Hardees franchise. By mandating a minimum equity stake, Hardees aims to align the Operating Principal's financial interests with those of the franchise, encouraging them to actively manage and grow the business. This also helps to ensure that the Operating Principal is committed to the long-term success and profitability of the Hardees location.

It's important to note that Hardees retains the discretion to modify this 10% equity ownership requirement. However, there is an exception: this equity requirement does not apply if the franchisee was a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity on the date of the first franchise-related agreement between the franchisee and Hardees. Prospective franchisees should confirm with Hardees whether any modifications or exceptions apply to their specific situation.