Does Hardees acknowledge that franchise agreements may differ between franchisees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that, over time, HR has entered, and will continue to enter, into agreements with other franchisees that may contain provisions, conditions and obligations that differ from those contained in this Agreement. The existence of different forms of agreement and the fact that HR and other franchisees may have different rights and obligations does not affect the duties of the parties to this Agreement to comply with the terms of this Agreement.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees acknowledges that franchise agreements may differ between franchisees. The FDD states that Hardees has and will continue to enter into agreements with other franchisees that may contain different provisions, conditions, and obligations than those in a new franchisee's agreement.
This means that a prospective Hardees franchisee should not assume that all other franchisees have the exact same terms. Some franchisees may have negotiated different royalty rates, marketing obligations, or other key terms. The existence of different agreements does not affect the duties of the parties to comply with the terms of their specific agreement.
This acknowledgement is important for prospective franchisees as it highlights the need to carefully review and understand the specific terms of their own franchise agreement. It also suggests that there may be some room for negotiation with Hardees during the franchise agreement process, although there is no guarantee that Hardees will be willing to negotiate any specific terms. Franchisees should seek legal counsel to fully understand their rights and obligations under the agreement.