What activities are prohibited for a Hardees Multi-Unit Manager regarding other business engagements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee operates restaurants that are franchised by HR or its affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy the requirements of Section 18.G., Franchisee shall designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager shall be under the supervision of the Operating Principal. The Multi-Unit Manager shall meet all of the following qualifications:
(1) The Multi-Unit Manager shall devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by HR or its affiliates) operated by Franchisee in the same geographic market and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
(2) Unless waived in writing by HR, the Multi-Unit Manager shall maintain his primary residence within a reasonable driving distance of the Franchised Restaurant.
(3) The Multi-Unit Manager shall successfully complete the FMTP and any additional training required by HR.
(4) HR shall have approved the Multi-Unit Manager, and not have later withdrawn that approval.
If the Multi-Unit Manager no longer qualifies as such, Franchisee shall designate another qualified person to act as Multi-Unit Manager within 30 days after the date the prior Multi-Unit Manager ceases to be qualified. Franchisee's designee to become the Multi-Unit Manager must successfully complete the FMTP and any additional training required by HR.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a Multi-Unit Manager must devote their full time and best efforts to supervising the operation of the franchised restaurant and other Hardees restaurants operated by the franchisee in the same geographic market. This role is designed for individuals overseeing multiple Hardees locations within a specific area.
The FDD stipulates that a Multi-Unit Manager cannot engage in any other business or activity, whether directly or indirectly, that demands substantial management responsibility. This restriction ensures that the manager's focus remains entirely on the Hardees restaurants under their supervision. The intention is to prevent divided attention and maintain operational standards across all units.
This requirement has significant implications for prospective franchisees. It means that the person designated as a Multi-Unit Manager must be fully dedicated to the Hardees business and cannot concurrently manage or operate other ventures that require significant time and attention. Hardees retains the right to approve the Multi-Unit Manager and can withdraw this approval if the manager no longer meets the qualifications. If a Multi-Unit Manager becomes unqualified, the franchisee has 30 days to find a replacement who meets Hardees's standards and completes the necessary training.