Is Hardees allowed to change or improve the System?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
NCHISEE | 34 | | 17. | TRANSFERS BY HR | 38 | | 18. | TRANSFERS BY FRANCHISEE | 38 | | 19. | GENERAL RELEASE | 42 | | 20. | COVENANTS | 43 | | 21. | TERMINATION | 45 | | 22. | OBLIGATIONS ON TERMINATION OR EXPIRATION | 48 | | 23. | OPTION TO PURCHASE | 49 | | 24. | RELATIONSHIP OF THE PARTIES | 51 | | 25. | INDEMNIFICATION | 52 | | 26. | CONSENTS, APPROVALS AND WAIVERS | 53 | | 27. | NOTICES | 53 | | 28. | FORCE MAJEURE | 53 | | 29. | ENTIRE AGREEMENT | 54 | | 30. | SEVERABILITY AND CONSTRUCTION | 54 | | 31. | GOVERNING LAW, FORUM AND LIMITATIONS | 55 | | 32. | MISCELLANEOUS | 56 |
GUARANTEE AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
APPENDIX A - FRANCHISE INFORMATION
APPENDIX B - WEEKLY ROYALTY FEE
APPENDIX C - FRANCHISEE'S ADVERTISING AND PROMOTION OBLIGATION
APPENDIX D - OWNERSHIP INTERESTS
APPENDIX E – ACKNOWLEDGEMENT ADDENDUM
APPENDIX F – COMMENCEMENT DATE ADDENDUM
APPENDIX G – LEASE ADDENDUM
APPENDIX H – ACH AUTHORIZATION FORM
APPENDIX I – STAR UNIVERSITY LICENSE AGREEMENT
HARDEE'S RESTAURANT FRANCHISE AGREEMENT
THIS AGREEMENT is made as of by and between Hardee's Restaurants LLC ("HR"), a Delaware limited liability company, and ("Franchisee").
RECITALS:
- A. As a result of the expenditure of time, skill, effort and money, HR and its predecessor have developed, and HR owns, a unique and distinctive system ("System") relating to the development, establishment and operation of quick service restaurants ("Hardee's Restaurants").
- B. The distinguishing characteristics of the System include, without limitation, uniform and distinctive exterior and interior design, layout and trade dress, including specially designed decor and furnishings; an efficient kitchen and equipment layout featuring an automatic charbroiling cooking process; special recipes and menu items; procedures and techniques for food and beverage storage, preparation, service and sanitation; technical assistance and training through course instruction and manuals; and advertising and promotional programs. The System and its components may be changed, improved, and further developed by HR from time to time.
- C. HR identifies the System by means of certain trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs and any combination thereof or any other indicia of source (collectively "Proprietary Marks") which HR has designated or may in the future designate for use with the System. The Proprietary Marks used to identify the System, including the principal Proprietary Marks, may be modified by HR and/or its affiliates from time to time.
- D. HR continues to develop, use and control the use of these Proprietary Marks in order to identify for the public the source of services and products marketed under the Proprietary Marks and the System, and to represent the System's high standards of quality, appearance and service.
- E.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees retains the right to modify and improve its System. The System encompasses various elements of the Hardees restaurant operation, including the restaurant's design, layout, trade dress, kitchen equipment, recipes, menu items, and operational procedures. Hardees can change, improve, and further develop the System over time. Hardees also reserves the right to modify the Proprietary Marks used to identify the System. These marks include trade names, trademarks, service marks, logos, and slogans.
This means that as a Hardees franchisee, you must adapt to changes Hardees makes to the brand's standards, appearance, and operational methods. These changes aim to keep the Hardees brand current and competitive, but franchisees must invest in updates to comply. For example, franchisees may need to remodel their restaurants, purchase new equipment, or implement new technologies.
Hardees also has the right to change the name of the restaurant. If Hardees elects to use a principal name in addition to or other than "Hardee's", they may notify the franchisee to change all or some items bearing the Proprietary Marks to the new name within a reasonable period of time. Hardees will not be liable to the franchisee for these changes, and the franchisee must adopt the new name, provided that Hardees has committed to adopting that name and making the necessary changes in at least 60% of the System Restaurants operated by Hardees or Hardees Affiliates.
As a Hardees franchisee, you are required to maintain your computer system according to Hardees's directives, including making necessary updates and changes to hardware and software. Hardees also has the right to amend the Operation Procedures Manual (OPM) to reflect changes in the image, specifications, and standards relating to developing, equipping, furnishing, and operating a Hardee's Restaurant. These changes are communicated through various means, and franchisees are responsible for purchasing the equipment necessary to receive these communications.