In the event of an unapproved transfer, does Hardees have to provide the developer an opportunity to cure the breach?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in this Agreement, any purported Transfer, by operation of law or otherwise, not having the prior written consent of HR shall be null and void and shall constitute a material breach of this Agreement, for which HR may terminate this Agreement without providing Developer an opportunity to cure the breach.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if a developer engages in a transfer without obtaining prior written consent from Hardees, it constitutes a material breach of the agreement. In such cases, Hardees has the right to terminate the agreement without offering the developer an opportunity to cure the breach. This means that Hardees can immediately end the franchise relationship if the developer violates the transfer terms.
This policy underscores the importance Hardees places on controlling who becomes a franchisee and ensures that all transfers meet their standards. Prospective Hardees franchisees should be aware that any unauthorized transfer can lead to immediate termination of their franchise agreement, highlighting the need to adhere strictly to the outlined transfer procedures.
It is crucial for potential Hardees developers to fully understand and comply with the transfer requirements detailed in Section 10 of the franchise agreement to avoid the severe consequence of immediate termination. This includes obtaining written consent from Hardees before any transfer of interest in the agreement or the Hardees business.