Does Hardees have the ability to solicit customers without compensating the franchisee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ss within 6 months after the loss of possession of the original franchised location; and (4) you reimburse us for all reasonable expenses actually incurred by us in connection with the acceptance of the new location.
You may only sell or distribute products identified by some or all of the Proprietary Marks from the Franchised Location; you may not use any other method or channel of distribution. We do not impose any geographic restrictions on your ability to solicit customers; however, see Item 13 for internet restrictions. In addition, you must participate in all online ordering and delivery programs that we may designate from time to time and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions. There are no restrictions on our ability to solicit customers, nor must we compensate you for soliciting or accepting orders. We reserve all rights to use and license the Hardee's System, and the Proprietary Marks other than those that we expressly grant you. We reserve the right to merchandise and distribute goods and services identified by the Proprietary Marks (or different proprietary marks) through any method or channel of distribution, including the internet.
As noted in Item 1, pursuant to the Management Agreement, CKR, at all times acting on our behalf, may fulfill all of our duties and obligations under all existing and future Franchise Agreements and Development Agreements, including managing the Hardee's Systems; marketing and offering new and renewal Franchise Agreements and Development Agreements as our franchise broker; training franchisees and their employees; and providing the required support to franchisees.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees places no restrictions on its ability to solicit customers and is not obligated to compensate franchisees for soliciting or accepting orders. This applies both to franchisees operating under a Development Agreement and those under a Franchise Agreement. Hardees retains all rights to use and license the Hardee's System and Proprietary Marks, except for those rights expressly granted to the franchisee. This includes the right to use any distribution channel, including the internet, to make sales within the Development Territory using the Proprietary Marks or different proprietary marks.
For a prospective Hardees franchisee, this means that Hardees can directly solicit customers without sharing any resulting revenue with the franchisee. This could potentially impact a franchisee's sales if Hardees' corporate marketing efforts draw customers away from the franchised location. The franchisee is required to participate in online ordering and delivery programs designated by Hardees and must comply with their terms, including any geographic or other delivery restrictions.
Furthermore, Hardees' affiliates and their franchisees may also solicit and accept orders from customers near a franchisee's business. While Hardees does not anticipate conflicts between its franchisees and its affiliates' franchisees, it also has no obligation to resolve any perceived conflicts that might arise. This could create a competitive environment where multiple Hardees-affiliated businesses are vying for the same customers, potentially affecting the profitability of an individual franchise.