What representations and warranties is Hardees entitled to when exercising its option to purchase the assets of a Hardees franchise?

According to Hardees's 2025 Franchise Disclosure Document, when Hardees exercises its option to purchase assets from a franchisee, it is entitled to customary representations and warranties. These assurances cover that the assets are free and clear of issues, or if not, that there is accurate and complete disclosure regarding these issues.

Specifically, Hardees is entitled to representations and warranties related to the ownership, condition, and title of the assets. This ensures Hardees receives clear information about who owns the assets and their current state. Hardees also receives representations and warranties concerning any liens and encumbrances on the assets, which protects Hardees from unexpected financial claims against the assets.

Furthermore, Hardees is entitled to representations and warranties regarding environmental and hazardous substances, ensuring compliance with environmental regulations and disclosure of any potential hazards. Finally, Hardees receives assurances about the validity of contracts and liabilities that could affect the assets, whether these liabilities are immediate or potential. This comprehensive set of representations and warranties aims to protect Hardees from unforeseen issues and liabilities when purchasing assets from a franchisee.