During the Development Term for a Hardees franchise, what level of effort is required from the Developer and Development Principal regarding the development, management, and operation of Franchised Restaurants in the Development Territory?

According to Hardees's 2025 Franchise Disclosure Document, during the Development Term, both the Developer and the Development Principal must devote their best efforts to the development, management, and operation of Hardees Franchised Restaurants within the Development Territory.

For a Hardees franchisee, this means a significant commitment of time and energy is required. The Development Principal, in particular, must have at least a 10% equity ownership interest in the Developer, unless Hardees modifies this requirement. The Development Principal must also be part of the Continuity Group and have full control over the day-to-day development of the Franchised Restaurants. Unless a Multi-Unit Development Manager is approved by Hardees, the Development Principal must devote full-time efforts to supervising the development and cannot engage in other activities that demand substantial management responsibility.

Furthermore, unless waived by Hardees, the Development Principal must live within a reasonable driving distance of the Development Territory. They may also be required to complete Hardees's development training and the Franchise Management Training Program (FMTP). Hardees must approve the Development Principal and can withdraw that approval later. If the Development Principal no longer meets these qualifications, the Developer has 30 days to designate a qualified replacement, who must also be approved by Hardees.