Does the Hardees Franchise Agreement grant franchisees the right to develop additional Franchised Restaurants?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive any exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own and/or operate, or from other channels of distribution or competitive brands that we control. You do not receive any right under the Franchise Agreement to develop additional Franchised Restaurants. Our prior written consent is required before you relocate the Franchised Restaurant. If your right to possession of the Franchise Restaurant premises is lost through no act or failure to act on your part, you may relocate the Franchised Restaurant if: (1) we accept the new location; (2) you construct and equip a Franchised Restaurant at the new location in accordance with the then-current System standards and specifications; (3) a Franchised Restaurant at the new location is open to the public for business within 6 months after the loss of possession of the original franchised location; and (4) you reimburse us for all reasonable expenses actually incurred by us in connection with the acceptance of the new location.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Franchise Agreement does not grant franchisees the right to develop additional Franchised Restaurants. The FDD states explicitly that franchisees do not receive any right under the Franchise Agreement to develop additional Franchised Restaurants.
This means that if a franchisee wishes to open another Hardees location, they cannot assume that their initial agreement grants them the right to do so. They would likely need to negotiate a new agreement or an amendment to their existing agreement with Hardees.
This is a fairly common practice in franchising, as franchisors often want to retain control over the growth and distribution of their brand. By not automatically granting franchisees the right to develop additional locations, Hardees can ensure that new locations are strategically placed and that franchisees meet certain performance standards before expanding. Prospective franchisees should discuss the possibility of future expansion with Hardees during their due diligence process to understand the requirements and opportunities for growth.