What certification is required in the case of permanent incapacity for a transfer of Hardees Developer ownership interest?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
G. In the event of the death or permanent incapacity of any person with an ownership interest in Developer, HR shall not unreasonably withhold its consent to a transfer to any person, persons, partnership or corporation designated by his legal representative, provided, however, that:
(1) The requirements of Section 10.B. and 10.C. shall have been met.
(2) The proposed transfer is applied for in writing within 2 months of the date of death or permanent incapacity by the legal representative of such individual, and is effected within 6 months thereafter.
(3) In the case of permanent incapacity, the legal representative shall have furnished a certification of a physician designated by HR that Developer has been or will be unable to develop or operate any System Restaurants for a period of 6 months or longer.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, in the event of permanent incapacity of a person with ownership interest in the Hardees Developer entity, a transfer of ownership interest can occur with certain provisions. The legal representative of the individual must apply for the transfer in writing within 2 months of the date of permanent incapacity and effect the transfer within 6 months thereafter.
To complete the transfer of ownership due to permanent incapacity, the legal representative must furnish a certification from a physician designated by Hardees. This certification must confirm that the Developer has been or will be unable to develop or operate any System Restaurants for a period of 6 months or longer.
This requirement ensures that Hardees has a degree of assurance that the individual is genuinely incapacitated and unable to fulfill their obligations, protecting the brand and the network of franchisees. It also allows for a structured and timely transfer process, minimizing potential disruption to the Hardees business operations.