Are there any exceptions to the non-compete restrictions for a Hardees franchisee's existing restaurant or foodservice operations?

According to Hardees's 2025 Franchise Disclosure Document, there are exceptions to the non-compete restrictions for a franchisee's existing restaurant or foodservice operations. Specifically, the restriction does not apply to a Hardees franchisee's existing restaurant or foodservice operations if they are identified in Appendix A of the Franchise Agreement. This means that if a franchisee already owns and operates a restaurant or foodservice business before signing the Hardees Franchise Agreement, and that business is listed in Appendix A, the non-compete clause will not prevent them from continuing to operate that existing business.

Additionally, the non-compete restriction does not apply to other restaurants operated by the franchisee that are franchised by Hardees or its affiliates. This exception allows a franchisee to operate multiple Hardees locations or other franchise concepts within the Hardees system without violating the non-compete agreement. This provision encourages franchisees to expand their investment within the Hardees family of brands.

However, it is important to note that any new restaurant or foodservice operations that a Hardees franchisee starts or acquires after signing the Franchise Agreement would be subject to the non-compete restrictions. These restrictions prevent the franchisee from engaging in any restaurant business that competes with Hardees, especially concerning the sale of "Designated Entrée Items" like hamburger sandwiches, chicken sandwiches, and breakfast sandwiches. The restrictions apply during the term of the agreement without geographical limitation and extend for two years after the agreement's expiration, transfer, or termination within a 2-mile radius of the Hardees location or any other Hardees restaurant.