Under what condition is a Hardees franchisee required to update Appendix D only with respect to changes in ownership interests of members of the Continuity Group?

According to Hardees' 2025 Franchise Disclosure Document, a franchisee is required to update Appendix D only with respect to changes in ownership interests of members of the Continuity Group if the franchisee becomes a publicly-held entity after the date of the first franchise-related agreement between the franchisee and Hardees or one of its affiliates.

Prior to becoming a publicly-held entity, all changes in ownership interests must be reported to Hardees and Appendix D must be updated to ensure the information is accurate and complete. However, once the franchisee becomes publicly-held, the reporting requirement is limited to changes within the Continuity Group.

The Continuity Group includes the Operating Principal, all holders of a direct or indirect legal or beneficial interest of 10% or more in the franchisee, all 10% owners of the franchisee's general partner (if the franchisee is a limited partnership), and all 10% owners of a business entity that owns a controlling interest in the franchisee. The Continuity Group must collectively own at least 51% of the ownership interests in the franchisee.

This distinction is important because it reduces the administrative burden on publicly-held Hardees franchisees, as they do not need to report every minor change in ownership. However, they must still keep Hardees informed of any changes within the core group of owners and operators who have significant control over the franchise.