What control must the Development Principal have over the day-to-day development of the Hardees Franchised Restaurants?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Principal must own at least a 10% equity ownership interest in you, or in your general partner if you are a limited partnership, unless modified by us in our sole discretion. (This requirement does not apply if you were a publicly-held entity or a wholly-owned subsidiary of a publiclyheld entity as of the date of the first franchise-related agreement between you and us.) The Development Principal must be a member of the Continuity Group and have full control over the day-to-day development of the Franchised Restaurants. Unless you have named, and we have approved, a Multi-Unit Development Manager (discussed below), the Development Principal must: (1) devote full time and best efforts to the supervising development of the Franchised Restaurants; and (2) maintain his/her primary residence within a reasonable driving distance of the Development Territory, unless waived in writing by us. The Development Principal will be required to successfully complete our development training and any additional training required by us. If you are developing restaurants in multiple markets that are franchised
by us or our affiliates, an individual meeting the above qualifications will serve as the Development Principal in at least one market.
If you are developing Franchised Restaurants in multiple geographic markets, for all markets in which the Development Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Development Manager. The Multi-Unit Development Manager will be under the supervision of the Development Principal. The Multi-Unit Development Manager must devote full time and best efforts to supervising the development of the Franchised Restaurants and other restaurants that are to be operated by you that are franchised by us or our affiliates in a geographic market, successfully complete our development training, the FMTP and any additional training required by us, and be approved by us. In addition, the Multi-Unit Development Manager must maintain his/her primary residence within a reasonable driving distance of the Development Territory, unless waived in writing by us.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 62–63)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Development Principal must have full control over the day-to-day development of Hardees Franchised Restaurants. Unless Hardees has approved a Multi-Unit Development Manager, the Development Principal must devote their full time and best efforts to supervising the development of the Franchised Restaurants. They must also maintain their primary residence within a reasonable driving distance of the Development Territory, unless Hardees waives this requirement in writing. The Development Principal will be required to successfully complete Hardees' development training and any additional training required by Hardees.
Furthermore, the Development Principal must own at least a 10% equity ownership interest in the franchisee, or in the franchisee's general partner if the franchisee is a limited partnership. Hardees may modify this requirement at their discretion. This ownership requirement does not apply if the franchisee was a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between the franchisee and Hardees. The Development Principal must also be a member of the Continuity Group.
If the franchisee is developing Hardees restaurants in multiple geographic markets, an individual meeting the above qualifications must serve as the Development Principal in at least one market. If the Development Principal fails to meet Hardees' requirements in all markets, the franchisee must designate and retain a Multi-Unit Development Manager, who will be under the supervision of the Development Principal. The Multi-Unit Development Manager must devote full time and best efforts to supervising the development of the Franchised Restaurants and other restaurants that are to be operated by the franchisee that are franchised by Hardees or its affiliates in a geographic market. The Multi-Unit Development Manager must also successfully complete Hardees' development training, the FMTP, and any additional training required by Hardees, and be approved by Hardees. In addition, the Multi-Unit Development Manager must maintain their primary residence within a reasonable driving distance of the Development Territory, unless Hardees waives this requirement in writing.