factual

Who is responsible for the cost of removing proprietary marks and trade fixtures from the premises upon expiration or termination of the Hardees lease?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 2. Landlord consents to Tenant's use of the proprietary signs, distinctive exterior and interior designs, colors and layouts, and the trademarks prescribed by HR (collectively, "Proprietary Marks"), and upon expiration or the earlier termination of the Lease, consents to permit Tenant, at Tenant's expense, to remove all such items and other trade fixtures, so long as Tenant makes repairs to the Premises caused by such removal.

Source: Item 23 — Receipts (FDD pages 85–541)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, the tenant is responsible for the costs associated with removing proprietary marks and trade fixtures upon the expiration or termination of the lease. Specifically, the landlord consents to permit the tenant to remove these items at the tenant's expense. However, the tenant is also responsible for making any necessary repairs to the premises caused by such removal.

This means that when a Hardees franchise lease ends, the franchisee (tenant) must pay for the removal of all Hardees-specific signs, designs, trademarks, and other trade fixtures from the property. This includes not only the cost of physically taking down and removing these items but also the expense of repairing any damage caused to the building during the removal process.

This provision ensures that the property is returned to a neutral state, free of Hardees branding, so it can be used by another tenant without infringing on Hardees's trademarks. It also protects the landlord by requiring the tenant to cover the costs of any necessary repairs resulting from the removal of these fixtures. A prospective Hardees franchisee should factor these potential costs into their financial planning, as they can represent a significant expense at the end of the lease term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.