Hardee's

Can you provide details on the 6 cases filed against the franchisor in the past 3 years, including the nature of claims (operational, financial, breach of contract) and outcomes?

What specific issues led to the 113 unit closures in 2024, and were these primarily due to franchisee financial struggles or franchisor-directed restructuring?

Given the system declined from 1,707 units (3 years ago) to 1,571 today, what strategies is the franchisor implementing to stabilize and grow the franchise network?

Why is the royalty rate set at 4.0% when the typical range for quick service restaurants is 5.0-6.0%, and is there any plan to align this with industry standards?

The ad fund rate of 4.25% exceeds typical ranges—how is this additional revenue allocated, and can you provide a detailed breakdown of ad fund spending?

Can you explain the rationale for the significantly lower transfer fee of $2,500 compared to industry standard of $5,000-$15,000?

Why is the non-compete period only 1 year and 2 miles when competitors typically enforce 2 years and 5-10 miles, and what protections does this provide franchisees?

The 20-year initial term is longer than typical 10-15 years—what provisions allow franchisees to exit early if the business underperforms?

With 2 pending litigation cases, can you disclose the nature of these disputes and their anticipated timeline for resolution?

How many of the 3 cases where the franchisor was plaintiff involved franchisee non-compliance versus payment disputes?

The franchise requires personal guarantees from designated Continuity Group members covering all undertakings—how is this interpreted in practice, and are there any limitations to the guarantor's liability?

All disputes must go through binding arbitration—can you provide examples of past disputes resolved this way and the typical costs incurred by franchisees?

What are the 12 non-curable defaults listed in the termination clause, and under what circumstances might a franchisee face immediate termination without cure opportunity?

The renewal requires meeting 7 conditions including 'substantial compliance'—what specific metrics define substantial compliance, and how often have renewals been denied?

Can you provide financial performance data (Item 19) broken down by unit age, location type, and operator tenure to assess sales sustainability?

Given the 191 unit transfers in 2024, what is the average holding period for franchisees before exiting, and what percentage of transfers involve profitable versus struggling locations?

How does the franchise support turnaround or struggling units, and what is the typical cost to franchisees for remedial training or operational overhauls?

With negative system growth of 2.73% over 3 years, how does this compare to competitor franchise systems in the quick service burger category?

Are there geographic concentrations of closures or transfers (regional performance issues), and should new franchisees avoid certain markets?

What is the franchisee satisfaction rating based on formal surveys, and what percentage of franchisees indicate they would recommend the franchise to others?