What monetary obligations must be current for a Hardees franchisee to remain in possession of the Franchised Location for the Renewal Term?

According to Hardees's 2025 Franchise Disclosure Document, a franchisee must meet certain monetary obligations to remain in possession of the franchised location for the renewal term. Specifically, all monetary obligations owed to the franchisee's landlord, if any, must be current. This means that if the franchisee leases the property from a landlord, they must be up-to-date on all rent and other payments required by the lease agreement to be eligible for renewal.

This requirement ensures that Hardees franchisees maintain good standing with their landlords, which is crucial for the stability and continuity of the business. Failure to keep these payments current could result in eviction and loss of the franchise location, regardless of whether the franchisee meets all other renewal conditions. This condition underscores the importance of sound financial management and maintaining positive relationships with landlords.

Prospective Hardees franchisees should carefully review their lease agreements and financial obligations to ensure they can meet this requirement. It is also advisable to maintain open communication with the landlord to address any potential issues promptly. Meeting this condition, along with other renewal requirements, is essential for securing the right to continue operating the Hardees franchise at the same location for the renewal term.