In the context of a Hardees franchise transfer, who is responsible for submitting a franchise application for the proposed transferee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Developer shall advise HR in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, and submit a copy of all contracts and all other agreements or proposals, and all other information requested by HR, relating to the proposed Transfer.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, when a developer (franchisee) proposes to transfer their franchise, they are responsible for advising Hardees in writing. As part of this notification, the developer must either submit, or ensure that the proposed transferee submits, a franchise application for the potential new franchisee.
This requirement ensures that Hardees has the opportunity to thoroughly evaluate the proposed transferee's qualifications, experience, and financial capabilities. Hardees needs to be confident that the new franchisee will uphold the brand's standards and successfully operate the franchise. The application process allows Hardees to gather necessary information and assess whether the transferee meets their criteria.
The FDD also states that Hardees retains the right to withhold consent for any transfer if the developer does not propose to transfer the same interest with respect to all agreements with Hardees in the Development Territory. This gives Hardees additional control over franchise transfers within a specific area. The decision to consent to a transfer is at Hardees's sole discretion, considering various factors they deem relevant.