Is the execution of the sublease required if the Hardees franchisee is purchasing a company-operated restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Following HR's acceptance of each proposed site and Developer's submission to HR of a signed lease or sublease for the proposed site, or evidence that Developer has completed its purchase of the proposed site, HR will prepare and forward to Developer a Franchise Agreement for the Authorized Site.
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee is not required to execute a sublease if they provide proof of real property purchase for the authorized site. Specifically, after Hardees accepts a proposed site, the developer must submit a signed lease or sublease, or evidence that they have completed the purchase of the proposed site.
This means that if a prospective Hardees franchisee is purchasing a company-operated restaurant, they can fulfill the site control requirements by providing proof of purchase rather than executing a sublease. This provides flexibility for franchisees who prefer to own the real estate associated with their Hardees restaurant.
It is important to note that the franchisee must provide Hardees with a copy of the fully-executed lease or sublease, including the Hardee's Lease Addendum, or proof of real property purchase within 6 months of the site's acceptance by Hardees, and before construction begins. Failing to meet this deadline could delay or prevent the franchisee from commencing construction and opening their Hardees restaurant.