Regarding the Hardees franchise agreement, what representation and warranty does the franchisee make concerning their right to remain in possession of the Franchised Restaurant for the Renewal Term?

According to Hardees's 2025 Franchise Disclosure Document, to remain a franchisee for the renewal term, the franchisee must warrant that they have the right to remain in possession of the franchised location or another location acceptable to Hardees for the renewal term. Additionally, all monetary obligations owed to the franchisee's landlord, if any, must be current. This condition ensures that the franchisee has a secure location from which to operate the Hardees restaurant during the renewal term.

This requirement protects Hardees by ensuring the franchisee has a stable business location and is not at risk of losing their lease due to non-payment. It also ensures that the location continues to meet Hardees's standards and is suitable for operating a Hardees restaurant. The franchisee bears the responsibility of maintaining a positive relationship with their landlord and fulfilling all financial obligations to secure their right to remain at the location.

For a prospective Hardees franchisee, this means they need to carefully manage their lease agreements and landlord relationships. They should ensure that all rent and other payments are made on time and that they maintain a good standing with their landlord. If the current location is not viable, the franchisee needs to find another location acceptable to Hardees to continue operating during the renewal term. This condition highlights the importance of financial stability and proactive lease management for a Hardees franchisee.