Does Hardees assume any liability to the Developer or proposed transferee if it withholds consent to the Transfer?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR's decision with respect to a proposed Transfer shall not create any liability on the part of HR: (a) to the transferee, if HR consents to the Transfer and the transferee experiences financial difficulties; or (b) to Developer or the proposed transferee, if HR withholds consent to the Transfer.
HR, without any liability to Developer or the proposed transferee, has the right, in its sole discretion, to communicate and counsel with Developer and the proposed transferee regarding any aspect of the proposed Transfer.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees will not be liable to the developer or the proposed transferee if it withholds consent to the transfer. This means that if Hardees decides not to approve a transfer, the developer or the potential new owner cannot sue Hardees for any resulting damages or losses.
Hardees retains the right to communicate and counsel with both the developer and the proposed transferee regarding any aspect of the proposed transfer without incurring any liability. This allows Hardees to provide guidance and express concerns without fear of legal repercussions.
This provision protects Hardees' interests by ensuring that its decisions regarding transfers do not expose it to legal challenges from either party involved. Prospective franchisees should understand that Hardees has significant discretion in approving or denying transfers and that these decisions are made without liability to the parties seeking the transfer.