In areas where Hardees and Carl's Jr. Restaurants overlap, how are potential conflicts between franchisees resolved?

According to Hardees's 2025 Franchise Disclosure Document, Hardees Restaurants are generally not located in the same geographic areas as Carl's Jr. Restaurants. However, in the limited instances where there is overlap between Hardees and Carl's Jr., Carl's Jr. and its franchisees are permitted to solicit or accept orders within the same area served by Hardees franchisees.

In these overlapping areas, any potential conflicts that may arise between franchisees of the Hardees and Carl's Jr. systems will be resolved on a case-by-case basis. This means there is no pre-defined or guaranteed method for resolving disputes, and resolutions will be determined individually as conflicts arise.

This case-by-case approach to conflict resolution introduces a degree of uncertainty for prospective Hardees franchisees. Unlike franchise systems that have established procedures for handling territorial disputes, Hardees franchisees in overlapping areas must rely on the franchisor's discretion to resolve conflicts. This could potentially lead to inconsistent outcomes or leave franchisees feeling vulnerable if a dispute arises with a neighboring Carl's Jr. franchisee. It would be prudent for potential franchisees to inquire about specific examples of past conflict resolutions to better understand the process and potential outcomes.