Upon termination or expiration of the Hardees franchise agreement, what must the franchisee immediately cease doing?

According to Hardees's 2025 Franchise Disclosure Document, Item 22 outlines the franchisee's obligations upon termination or expiration of the franchise agreement. Specifically, the franchisee must immediately cease operating the Hardees restaurant. This means the franchisee can no longer use Hardees's branding, systems, or proprietary information to run a restaurant at the previously franchised location.

In addition to ceasing operations, the franchisee must also immediately pay Hardees and its affiliates all outstanding sums related to the franchised restaurant. This includes unpaid royalties, marketing contributions, and any other debts owed to Hardees. The prompt payment of these dues is a critical obligation, and failure to comply can result in further legal action.

Furthermore, the franchisee is required to promptly return Hardees's Operations Procedures Manual (OPM), any copies of the OPM, and all other materials and information furnished by Hardees. This includes deleting all electronic copies of these materials. The franchisee must also return all computer software, disks, tapes, and other electronic and magnetic storage media in good condition, with the exception of normal wear and tear. This ensures that Hardees's confidential and proprietary information is protected and not used by the former franchisee after the agreement ends.