What are the possible lengths of the Renewal Term that a Hardees franchisee can choose?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) At the expiration of the Initial Term, Franchisee shall have an option to remain a franchisee at the Franchised Location for a Renewal Term of 10 years or, at Franchisee's option, 5 years. Franchisee must give HR written notice of whether or not it intends to exercise its renewal option and the length of the proposed Renewal Term not less than 12 months, nor more than 24 months, before the expiration of the Initial Term. Notwithstanding the foregoing, if Franchisee subleases the Franchised Location from HR, Franchisee must give HR the notice described in the preceding sentence not less than 6 months, nor more than 12 months, before notice of renewal is required to be provided to the landlord under the master lease. Failure by Franchisee to timely provide HR the required notice constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for either 5 or 10 years. Specifically, at the expiration of the initial term, the franchisee can choose to remain a franchisee for a renewal term of 10 years or, at the franchisee's option, 5 years.
To exercise this renewal option, the Hardees franchisee must provide written notice to Hardees Restaurants LLC (HR) regarding their intention to renew and the desired length of the renewal term. This notice must be given no less than 12 months and no more than 24 months before the expiration of the initial term. However, if the franchisee subleases the franchised location from HR, the notice period is between 6 and 12 months before the renewal notice is required to be provided to the landlord under the master lease. Failure to provide timely notice constitutes a waiver of the franchisee's option to renew.
To remain a franchisee for the renewal term, the Hardees franchisee must meet several conditions, including not being in default under any agreements with HR, making required capital expenditures to modernize the restaurant, complying with HR's training requirements, and ensuring they have the right to remain in possession of the franchised location. Additionally, the franchisee and all relevant parties must execute a general release and covenant not to sue HR. The franchisor, HR, will then determine if the franchisee has operated the restaurant in accordance with the franchise agreements and system standards. If all conditions are met, HR will provide a renewal franchise agreement for the franchisee to sign.