After the Hardees Development Agreement terminates, is the Developer allowed to operate a business under a name that gives the impression they are connected with HR, if they do not have an effective franchise agreement or commitment agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Developer shall not, except with respect to a restaurant franchised by HR or its affiliates which is then open and operating pursuant to an effective franchise agreement or a restaurant franchised by HR or its affiliates for which there is an effective commitment agreement: (1) operate or do business under any name or in any manner that might tend to give the public the impression that Developer is connected in any way with HR or its affiliates or has any right to use the Hardee's System; (2) make, use or avail itself of any of the materials or information furnished or disclosed by HR or its affiliates under this Agreement or disclose or reveal any such materials or information or any portion thereof to anyone else; or (3) assist anyone not licensed by HR or its affiliates to construct or equip a foodservice outlet substantially similar to a Hardee's Restaurant.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, after the Development Agreement terminates, the Developer is restricted from operating a business that could mislead the public into thinking they are still connected with Hardees. Specifically, this restriction applies if the Developer does not have an effective franchise agreement or a commitment agreement in place with Hardees.
This means that a former Hardees developer cannot use a business name, logo, or any other identifying marks that suggest an ongoing relationship with the Hardees brand unless they have a valid franchise agreement or commitment agreement. This is to protect Hardees' brand and prevent customer confusion.
The FDD also states that the developer must not make use of any materials or information furnished by Hardees after the termination of the agreement, and they cannot assist anyone not licensed by Hardees to construct or equip a foodservice outlet similar to a Hardees Restaurant. These restrictions are designed to prevent the unauthorized use of Hardees' proprietary information and business model.