In a heated dispute, Paradigm Investment Group, a long-term franchisee of Hardee’s, has taken legal action against CKE Restaurants over alleged breaches of franchise agreements, highlighting issues such as tech fees and mandated operational changes.
Key Points
- Paradigm has operated Hardee’s franchises for over 25 years, with more than 60 locations across multiple states.
- The lawsuit claims that Hardee’s attempted to terminate their franchises without justification, demanding compliance with disputed practices.
- Paradigm argues that the required tech fees and third-party delivery systems were unjustly added to their franchise agreements.
- Hardee’s alleged defaults included not using specific tech services and not adhering to operational hours.
- Paradigm asserts that altered hours of operation benefited their business and did not harm Hardee’s interests.
- The franchisee is seeking a declaratory judgment to prevent the termination of their agreements and a reversal of purported breaches.
Why should I read this?
This article dives into a brewing storm between a seasoned franchisee and the Hardee’s corporation that could affect how franchises operate moving forward. If you follow trends in the fast-food industry or are considering entering this business space, this case is a must-read—the verdict could set important precedents for franchise agreements everywhere.