Can affiliates of Hardees operate or franchise businesses that sell similar goods or services?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described in Item 1, we do not operate or franchise, or currently plan to operate or franchise, any business under a different trademark that sells or will sell goods or services similar to those that our franchisees sell. However, our affiliates, including the Affiliated Programs described in Item 1 and other portfolio companies that currently are or in the future may be owned by private equity funds managed by Roark Capital Management, LLC, may operate and/or franchise businesses that sell similar goods or services to those that our franchisees sell. Item 1 describes our current Affiliated Programs that offer franchises, their principal business addresses, the goods and services they sell, whether their businesses are franchised and/or company-owned, and their trademarks. All of these other brands (with limited exceptions) maintain offices and training facilities that are physically separate from the offices and training facilities of our franchise network. Most of the Affiliated Programs are not direct competitors of our franchise network given the products or services they sell, although some are, as described in Item 1. All of the businesses that our affiliates and their franchisees operate may solicit and accept orders from
customers near your business. Because they are separate companies, we do not expect any conflicts between our franchisees and our affiliates' franchisees regarding territory, customers and support, and we have no obligation to resolve any perceived conflicts that might arise.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, affiliates of Hardees, including those owned by Roark Capital Management, LLC, have the ability to operate or franchise businesses that offer similar goods or services to those sold by Hardees franchisees. Item 1 of the FDD describes Hardees's current Affiliated Programs, their business addresses, the goods and services they sell, and their trademarks. While most of these affiliated programs are not direct competitors, some may be. These affiliated businesses and their franchisees can solicit and accept orders from customers near a Hardees franchise location.
Hardees does not anticipate conflicts between its franchisees and its affiliates' franchisees regarding territory, customers, or support, and Hardees has no obligation to resolve any perceived conflicts that might arise. This means that a Hardees franchisee could face competition from other brands owned by the same parent company or investment group, without Hardees intervening to protect the franchisee's interests.
Furthermore, Hardees and its affiliates, such as CKR and CJR, have specific rights regarding the Hardees System and Proprietary Marks. CKR, acting on behalf of Hardees, can fulfill duties and obligations under franchise agreements, manage the Hardees System, market new franchise agreements, train franchisees, and provide support. CJR fulfills similar duties for Carl's Jr. Restaurants. While Hardees and Carl's Jr. Restaurants are generally not located in the same geographic area, there may be overlap, in which case CJR and its franchisees may solicit orders within the same area as Hardees franchisees, with any potential conflicts resolved on a case-by-case basis. This arrangement gives Hardees significant flexibility in managing its brands and territories, but it also introduces a potential risk of competition or conflict for franchisees.