For what term do the Hardees guarantors guarantee the franchisee's payment and performance?

According to Hardees' 2025 Franchise Disclosure Document, the guarantors guarantee the franchisee's payment and performance for the term of the Franchise Agreement. Specifically, the guarantors ensure that the franchisee will punctually pay and perform every undertaking, agreement, and covenant outlined in the agreement, as well as promptly pay all other monies owed to Hardees and/or its affiliates. This obligation extends not only for the duration of the agreement but also thereafter as provided by the agreement or by law or equity.

This means that if a prospective Hardees franchisee requires a guarantor, that guarantor's responsibility for the franchisee's financial and operational obligations lasts as long as the franchise agreement is in effect. This includes any extensions or renewals of the agreement. Furthermore, the guarantor's obligations may continue even after the agreement terminates if there are outstanding debts or unfulfilled responsibilities.

It is also important to note that Hardees retains the right to demand personal financial statements from any guarantor periodically. Moreover, if a guarantor ceases to be part of the Continuity Group, a 10% Owner, or an officer/director of the franchisee, their obligations under the guarantee remain in effect unless Hardees provides a written release, although obligations under Section 20.C of the agreement remain in effect for two years after such release unless prohibited by law. This ensures Hardees has continuous financial security throughout the franchise relationship.