Is Hardees required by any agreement to protect or defend copyrights or confidential information?

According to Hardees' 2025 Franchise Disclosure Document, Hardees is not required by any agreement to protect or defend copyrights or confidential information, though they intend to do so as appropriate. However, franchisees are required to protect Hardees' confidential information.

As a Hardees franchisee, you will have access to trade secret information, such as manuals, formulas, methods, customer information, and vendor and pricing lists. The FDD emphasizes that this information has independent economic value because it is not generally known or easily discoverable by others. Franchisees must agree to keep this information confidential and only disclose it to employees or agents with a legitimate need to know, ensuring those individuals also adhere to confidentiality requirements. Franchisees also cannot contest Hardees' interest in these trade secrets and confidential information.

While Hardees is not legally obligated to protect its copyrights or confidential information through agreements, the franchise agreement places a significant responsibility on the franchisee to safeguard Hardees' proprietary information. This includes maintaining the confidentiality of the Hardee's System's trade secrets and know-how, which gives Hardees a competitive advantage. The franchisee must implement systems to ensure employees keep this information confidential and may be required to obtain signed Confidential Disclosure Agreements from designated employees at Hardees' request. This obligation extends beyond the term of the agreement, as franchisees are prohibited from disclosing confidential information even after the agreement expires or terminates.