Under what conditions will the Hardees agreement automatically terminate if the franchise agreement between the Customer and Operator is terminated?

According to Hardees's 2025 Franchise Disclosure Document, the franchise agreement will automatically terminate under specific conditions related to the agreements between the Customer and the Operator.

Specifically, the Hardees agreement will automatically terminate as to a franchised location if the franchise agreement between the Customer and the Operator is terminated. In this case, the termination applies to all of the Customer's franchised Hardees locations operated by that Operator. The agreement will also automatically terminate if the Operator no longer owns and operates the franchised location. However, in this case, the termination only applies to that specific franchised location.

This clause protects Hardees by ensuring that if an operator loses the right to operate a location (either through termination of their agreement with the Customer or by no longer owning/operating the location), the Hardees franchise at that location also ceases operation. This prevents unauthorized operation or potential damage to the Hardees brand. Prospective franchisees should understand these termination conditions, as they directly impact their rights and obligations under the franchise agreement.