How often may Hardees conduct audits of a franchisee's compliance with Consumer Information obligations?

According to Hardees's 2025 Franchise Disclosure Document, Hardees has the right to audit a franchisee's compliance with Consumer Information obligations at least once every twelve months. These audits can be conducted through various methods, including manual reviews, automated scans, and technical and operational testing. This means Hardees franchisees should expect to be reviewed at least annually to ensure they are meeting the requirements for handling consumer data.

Hardees franchisees must cooperate with Hardees, its internal auditors, and external auditors during these inspections, examinations, and assessments. This cooperation includes making available all information necessary to demonstrate compliance with their obligations related to Consumer Information. Franchisees should maintain meticulous records and be prepared to provide them promptly when requested to ensure a smooth audit process.

These audits are part of Hardees's broader effort to ensure that franchisees comply with data privacy, security, and other applicable laws. Franchisees are responsible for maintaining reasonable, appropriate, and effective security controls to protect Consumer Information. Failure to comply with these obligations can result in financial losses or the need for remedial actions, highlighting the importance of adhering to Hardees's standards and policies pertaining to Privacy Laws.