What are the character and credit rating requirements for a proposed Hardees transferee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The proposed transferee (and if the proposed transferee is not a natural person, all persons that have a direct or indirect interest in the transferee as HR may require) must demonstrate to HR's satisfaction that it has extensive experience in high quality restaurant operations of a character and complexity similar to the restaurants franchised by HR or its affiliates; must meet the managerial, operational, experience, quality, character and business standards for a developer promulgated by HR from time to time; must possess a good character, business reputation and credit rating; must have an organization whose management culture is compatible with HR's management culture; and must have adequate financial resources and working capital, as determined by HR in its sole discretion, to meet Developer's development obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if a developer wishes to transfer their franchise to another party, the proposed transferee must meet certain character and credit rating requirements. Specifically, the proposed transferee (or any individuals with a direct or indirect interest in the transferee, if it's not a natural person) must demonstrate to Hardees's satisfaction that they possess a good character, business reputation, and credit rating.
In addition to character and credit rating, the proposed transferee must also have extensive experience in high-quality restaurant operations similar to those franchised by Hardees. They must meet the managerial, operational, experience, quality, and business standards for a developer as determined by Hardees. The transferee's organization must also have a management culture compatible with Hardees's, and they must have adequate financial resources and working capital to meet the developer's obligations under the agreement, as determined solely by Hardees.
These requirements ensure that any new Hardees franchisee maintains the brand's standards and is capable of successfully operating the franchise. Hardees retains sole discretion in determining whether a proposed transferee meets these criteria. This protects Hardees from potential damage to its reputation or financial stability due to underqualified or unsuitable franchisees.