Under what condition might Hardees direct a franchisee to temporarily maintain the existing appearance of the Franchised Location after termination?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless HR directs Franchisee to temporarily maintain the existing appearance of the Franchised Location while HR determines if it will exercise its option under Section 23, Franchisee promptly shall make such alterations and modifications to the Franchised Location as may be necessary to clearly distinguish to the public the Franchised Location from its former appearance and also make those specific additional changes as HR may request for that purpose. If Franchisee fails to promptly make these alterations and modifications, HR shall have the right (at Franchisee's expense, to be paid upon Franchisee's receipt of an invoice from HR) to do so without being guilty of trespass or other tort.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, following the termination of the franchise agreement, Hardees may direct the franchisee to temporarily maintain the existing appearance of the franchised location. This occurs while Hardees determines whether it will exercise its option to purchase the assets of the franchised restaurant.
If Hardees does not exercise its option to purchase the assets, the franchisee is then required to promptly make alterations and modifications to the location. These changes must clearly differentiate the location from its former appearance as a Hardees restaurant. Hardees may also request specific additional changes for this purpose.
If the franchisee fails to promptly make these required alterations and modifications, Hardees has the right to make the changes themselves. The franchisee will be responsible for covering these expenses, which are to be paid upon receipt of an invoice from Hardees. This ensures that the location no longer appears to be a Hardees restaurant, preventing any confusion for customers.