Does the restriction on HR operating or licensing Hardee's Restaurants in the Development Territory apply to Hardee's Restaurants already under development or in operation as of the date of the Development Agreement?

According to Hardee's 2025 Franchise Disclosure Document, the restrictions on HR (presumably Hardee's) operating or licensing Hardee's Restaurants in the Development Territory do not apply to Hardee's Restaurants already under development or in operation as of the date of the Development Agreement. This means that any Hardee's restaurants that are either being developed or are already operational within the designated Development Territory at the time the Development Agreement is signed are not subject to these restrictions.

This clause protects existing Hardee's restaurants and those already in progress from being affected by the new development agreement. It ensures that Hardee's can continue to operate or license existing restaurants without conflicting with the developer's rights under the new agreement. This provision provides clarity and prevents potential disputes regarding existing operations within the Development Territory.

For a prospective Hardee's developer, this is a beneficial clause as it clarifies the scope of their exclusive rights. It confirms that their development rights apply to new Hardee's restaurants and do not retroactively affect existing or in-development locations. This allows the developer to focus on expanding the Hardee's brand within the territory without concerns about disrupting ongoing operations.