Under the Hardees guarantee, what constitutes a 'Default'?

According to Hardees' 2025 Franchise Disclosure Document, a 'Default' under the Guarantee exists if any of the following events occur: failure of timely payment or performance of obligations under the Guarantee; breach of any agreement or representation contained within the Guarantee; the dissolution, termination of existence, loss of good standing status, appointment of a receiver, assignment for the benefit of creditors, or commencement of any insolvency or bankruptcy proceeding by or against any of the undersigned; and/or the entry of any monetary judgment or assessment against, the filing of any tax lien against, or the issuance of any writ of garnishment or attachment against any property of or debts due any of the undersigned.

If any of these default events occur, all obligations of the undersigned become immediately due and payable without notice. This means Hardees can immediately demand full payment or performance without providing any warning or opportunity to correct the issue. The death of one of the undersigned does not nullify the guarantee; instead, the estate becomes bound by all obligations existing at the time of death, and the obligations of any surviving guarantors remain in full effect.

This section of the FDD outlines the specific conditions that trigger a default under the guarantee, which is a critical aspect for anyone acting as a guarantor for a Hardees franchise. Prospective franchisees should carefully review these conditions with their legal and financial advisors to fully understand the scope of their obligations and potential liabilities under the guarantee. Understanding these triggers is essential for managing risk and ensuring compliance with the terms of the franchise agreement.