What consideration does Hardees receive from the Developer in exchange for the right to develop Franchised Restaurants in the Development Territory?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of HR's grant to Developer of the right to develop Franchised Restaurants in the Development Territory during the term of this Agreement ("Development Term"), as well as the mutual covenants, agreements and obligations set forth below, the parties agree as follows:
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees grants the Developer the right to develop Franchised Restaurants in a specific Development Territory during a set Development Term. In exchange for this grant, the Developer provides consideration to Hardees through mutual covenants, agreements, and obligations detailed within the Development Agreement.
This agreement stipulates that the Developer must adhere to the terms and conditions outlined, including developing and operating the number of Franchised Restaurants as specified in the Development Schedule (Appendix B). The Developer is also obligated to obtain Hardees's written acceptance of each restaurant site and deliver a fully-signed lease or proof of purchase for the site within nine months of Hardees's approval. Strict compliance with the Development Schedule is essential to the agreement.
Furthermore, the Developer must devote their best efforts to the development, management, and operation of the Franchised Restaurants within the Development Territory. They are also bound by confidentiality agreements, protecting Hardees's proprietary information and trade secrets. These mutual agreements and obligations serve as the consideration Hardees receives in exchange for granting the development rights.