After termination of a Hardees franchise, what immediate actions must the franchisee take regarding the operation of the Franchised Restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
To ensure full operational efficiency and communication capability between HR's computers and those of all Hardee's Restaurants, Franchisee agrees, at its expense, to keep its computer system in good maintenance and repair and to make additions, changes, modifications, substitutions and replacements to its computer hardware, software, telephone and power lines and other computer-related facilities as directed by HR, and on the dates and within the times specified by HR in its sole discretion. Upon termination or expiration of this Agreement, all computer software, disks, tapes and other magnetic storage media shall be returned to HR in good operating condition, excepting normal wear and tear.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Based on the 2025 Hardees Franchise Disclosure Document, the document does not explicitly state the immediate actions a franchisee must take regarding the operation of the Franchised Restaurant after termination. However, the FDD does state that upon termination or expiration of the agreement, all computer software, disks, tapes, and other magnetic storage media must be returned to HR (Hardee's Restaurants LLC) in good operating condition, normal wear and tear excepted.
Item 22 of the FDD discusses the franchisee's obligations regarding the upkeep and maximum operation of the franchised restaurant, including maintaining the restaurant in first-class condition and continuously operating it at maximum capacity. These clauses imply certain expectations around ceasing operations and maintaining standards even as the franchise agreement concludes. The FDD also emphasizes the importance of adhering to system standards and protecting the brand's image, which could extend to the period immediately following termination.
To fully understand the specific steps required upon termination, a prospective Hardees franchisee should seek clarification from the franchisor regarding the immediate post-termination obligations. This includes understanding procedures for ceasing operations, handling remaining inventory, removing Hardees branding, and any other actions required to ensure a smooth and orderly transition.