What representations and warranties is Hardees entitled to when exercising its option to purchase assets?

According to Hardees' 2025 Franchise Disclosure Document, when Hardees exercises its option to purchase assets from a franchisee, it is entitled to customary representations and warranties. Specifically, Hardees or its assignee is entitled to assurances that the assets are free and clear, with accurate and complete disclosure regarding several key aspects.

These aspects include ownership, condition, and title of the assets, ensuring that Hardees receives clear documentation and confirmation of legal possession. Hardees also requires warranties concerning any liens and encumbrances on the assets, which protects them from assuming unexpected financial burdens or legal claims against the property. Furthermore, Hardees seeks representations related to environmental and hazardous substances, ensuring compliance with environmental regulations and avoiding potential liabilities associated with contamination or pollution.

Finally, Hardees is entitled to warranties regarding the validity of contracts and liabilities that could affect the assets, whether these liabilities are immediate or potential. This comprehensive approach to representations and warranties aims to protect Hardees from unforeseen risks and liabilities when purchasing assets from a franchisee, ensuring a smooth and legally sound transaction.