According to the Hardees agreement, what is the 'Development Term' defined as?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR hereby grants to Developer, subject to the terms, conditions, provisions and limitations of this Agreement, the right to develop Franchised Restaurants in the Development Territory during the Development Term. The Development Term begins on the date this Agreement is signed by HR and
terminates on the first to occur of: (1) the date that the last Franchised Restaurant required by the Development Schedule in attached Appendix B opens for business; or (2) the date that the last Franchised Restaurant was required to be opened pursuant to the Development Schedule. There is no renewal term for this Agreement. Each Franchised Restaurant shall be located in the Development Territory at a specific location accepted by HR.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the Development Term refers to the period during which a developer has the right to develop franchised Hardees restaurants within a specific Development Territory. This term begins when the Development Agreement is signed by Hardees and ends when either the last restaurant required by the Development Schedule opens or the date the last restaurant was required to open, as outlined in Appendix B. It's important to note that the Development Agreement does not include a renewal term.
During the Development Term, the developer is obligated to adhere to the Development Schedule, which specifies the number of Hardees restaurants they must develop, open, and continuously operate within the Development Territory. Each restaurant site requires written acceptance from Hardees. The developer must provide a signed lease or proof of purchase for the site within nine months of Hardees' approval. Strict adherence to the Development Schedule is crucial for maintaining the agreement.
Hardees also provides the developer with a Development Guide for the Development Term, which contains mandatory specifications and standards for constructing Hardees restaurants. The guide may be updated periodically to reflect changes in the brand's image and construction standards. The developer is responsible for keeping their copy of the Development Guide current and ensuring they have the necessary equipment to receive these updates. This guide ensures uniformity and quality across all Hardees locations developed under the agreement.
During the Development Term, Hardees agrees not to operate or license others to operate Hardees restaurants within the Development Territory, provided the developer remains in compliance with all agreements and obligations. However, this restriction does not prevent Hardees from operating or licensing restaurants outside the Development Territory, or from operating other types of restaurants at any location. This exclusivity is limited and tied to the developer's compliance with the Development Agreement.