Under the Hardees agreement, is a developer required to obtain covenants from stockholders, managers, directors, members, officers, or restaurant managers?

According to Hardees's 2025 Franchise Disclosure Document, Hardees can request that the developer obtain covenants from certain individuals. Specifically, at Hardees's request, the developer will obtain covenants similar in substance to those already in place for the developer from any of its stockholders, managers, directors, members, officers, or restaurant managers and from family members of guarantors, unless prohibited by law.

These covenants are similar to those outlined in Section 12 of the agreement, which include best efforts and confidentiality. This means Hardees can require these individuals to also commit to devoting their best efforts to the Hardees business and maintaining the confidentiality of the Hardees System's trade secrets and proprietary information.

This requirement provides Hardees with an additional layer of protection for its brand and confidential information. By extending the covenants to a wider group of individuals associated with the developer, Hardees aims to ensure a stronger commitment to the success and integrity of the Hardees franchise. However, the developer is only obligated to obtain these covenants if requested by Hardees and if not prohibited by law, giving some flexibility in implementation.