During construction or renovation of a Hardees restaurant, is the franchisee required to ensure their architect, engineer, contractors, and subcontractors cooperate with Hardees and its designees for inspections?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
During the course of construction and/or renovation, Franchisee shall (and shall cause Franchisee's architect, engineer, contractors, and subcontractors to) cooperate fully with HR and its designees for the purpose of permitting HR and its designees to inspect the Franchised Location and the course of construction of the Franchised Restaurant in order to determine whether construction is proceeding according to the Plans. Without limiting the generality of the foregoing, Franchisee, and Franchisee's architect, engineer, contractors and subcontractors shall: (1) supply HR or its designees with samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment and other material and reports, if any such tests, studies or reports indicate there may be material problems or as HR or its designees may request; and (2) afford HR's representatives and its designees access to the Franchised Location and to the construction work in order to permit HR and its designees to carry out their inspections.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees are required to ensure full cooperation from their architect, engineer, contractors, and subcontractors with Hardees and its designees during construction or renovation. This cooperation is specifically for the purpose of allowing Hardees and its representatives to inspect the franchised location and the construction progress to verify compliance with the approved plans.
This requirement means a Hardees franchisee must contractually obligate their construction and design professionals to comply with Hardees's inspection rights. This includes providing samples of construction materials, test results, and other relevant reports if material problems are indicated or if Hardees requests them. Furthermore, the franchisee must ensure that Hardees's representatives have access to the construction site to conduct their inspections.
This obligation is in place so Hardees can ensure that the restaurant is being built according to their brand standards and approved plans. However, Hardees clarifies that while they have the right to approve plans and inspect construction, they assume no liability or obligation regarding the location, design, construction, or acquired furnishings. This limitation of liability means the franchisee bears the ultimate responsibility for the project's success and compliance with all applicable regulations.
In addition to facilitating inspections, the Hardees franchisee must also submit monthly progress reports to Hardees from the construction commencement date until the opening date. These reports detail the progress made toward completing construction and preparing to open the restaurant by the agreed-upon opening date. This ongoing reporting and inspection process allows Hardees to monitor the project's progress and address any potential issues promptly.