Is the effectiveness of the lease for a Hardees restaurant contingent upon the tenant's execution of a Franchise Agreement with HR?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, notwithstanding anything to the contrary elsewhere in the Lease, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
- 1. The effectiveness of the Lease is contingent upon Tenant's execution of the Franchise Agreement with HR within 30 days after the date of this Addendum.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the effectiveness of the lease for a Hardees restaurant is contingent upon the tenant's execution of a Franchise Agreement with HR (Hardee's Restaurants LLC). Specifically, the lease agreement includes an addendum that stipulates this condition.
According to the lease addendum, the tenant must execute the Franchise Agreement with HR within 30 days of the addendum's date for the lease to be effective. This requirement ensures that the franchisee is officially part of the Hardees system before the lease becomes fully operational. This protects Hardees by ensuring that only approved franchisees operate restaurants under their brand.
This contingency has significant implications for prospective Hardees franchisees. It means that securing a lease is not a guarantee that they can open a Hardees restaurant at that location. The franchisee must also be approved by Hardees and sign the Franchise Agreement within the specified timeframe. If the Franchise Agreement is not executed within 30 days, the lease may become ineffective, potentially leading to legal and financial complications for the franchisee. Therefore, coordinating the lease and franchise agreement processes is crucial for anyone looking to open a Hardees franchise.