Does the Hardees franchise agreement include a development agreement, and if so, where can I find its provisions?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]
ITEM 17
RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
These tables list certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this disclosure document.
DEVELOPMENT AGREEMENT
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 1.A | The term is from the date of signing of the Development Agreement to the first to occur of: (1) the date that the last Franchised Restaurant required by the Development Schedule opens for business; or (2) the date the last Franchised Restaurant is required to be opened under the Development Schedule. |
| b. Renewal or extension of the | ||
| term | Not Applicable | |
| c. Requirements for you to | ||
| renew or extend | Not Applicable | |
| d. Termination by you | Not Applicable | |
| e. Termination by us without | Not Applicable | |
| cause | ||
| f. Termination by us with cause | Section 13 | We may terminate upon default, which includes, but is not limited to, remaining in default beyond any applicable cure period under any agreement with us or our affiliates, including the Franchise Agreement. |
| g. “Cause” defined-curable defaults | Section 13.A.(13) | You have 10 days to cure monetary defaults. You have 30 days to cure defaults other than those discussed in paragraph h. |
| h. “Cause” defined-non-curable defaults | Sections 13.A.(1)-(12) | Non-curable defaults include: failure to obtain written site acceptance on schedule; failure to open and operate the scheduled number of Franchised Restaurants; begin construction before receipt of fully-signed Franchise Agreement; insolvency; bankruptcy; material breach of covenants; transfer without our prior written consent; material misrepresentation; falsification of reports; felony convictions; default beyond cure period under other agreements with HR or its affiliates, under any real estate or |
| Provision | Section in Development Agreement | Summary |
| r. Noncompetition covenants after the franchise is terminated or expires | Section 12.C | No activity as described in paragraph q. above for 2 years within your Development Territory, within 2 miles of its border or within a 2-mile radius of any then-existing Hardee's Restaurant. |
| s. Modification of the agreement | Section 20 | No modification generally without signed agreement, but we may modify the Hardee's System and the Development Guide. |
| t. Integration/merger clause | Section 20 | Only terms of the Development Agreement, the Development Guide, the documents referred to in and the attachments to the Development Agreement are binding. Any other oral or written promises related to the subject matter of the Development Agreement may not be enforceable. This is not intended to disclaim any representation made in this disclosure document. |
| u. Dispute resolution by | ||
| arbitration or mediation | Not Applicable | |
| v. Choice of forum | Section 22.B | Subject to applicable state law, you can only file suit where our principal offices are located; we may file suit in the jurisdiction where our principal offices are located; where you reside or do business; where the Development Territory or any Franchised Restaurant is or was located; or where the claim arose. For Illinois franchisees, as provided in the Illinois Franchise Disclosure Act, any provision in the Development Agreement that designates jurisdiction in a forum outside of Illinois is void. |
| w. Choice of law | Section 22.A | Subject to applicable state law, Tennessee law applies. For Illinois franchisees, as provided in the Illinois Franchise Disclosure Act, Illinois law governs your agreement. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 64–69)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the franchise relationship may include a Development Agreement. Item 17 indicates that tables list important provisions of both the Franchise Agreement and related agreements, including the Development Agreement, and directs prospective franchisees to read these provisions in the agreements attached to the disclosure document.
Item 17 includes a table outlining key provisions within the Development Agreement. This table specifies the section in the Development Agreement where each provision is detailed, along with a summary of the provision. For example, the length of the franchise term under the Development Agreement is found in Section 1.A, and it lasts from the date of signing until the earlier of the opening of the last required franchised restaurant or the date the last restaurant is required to open per the development schedule. Termination by Hardees with cause is addressed in Section 13, and noncompetition covenants after termination or expiration are in Section 12.C.
Choice of forum and choice of law are also specified within the Development Agreement. Subject to applicable state law, franchisees can only file suit where Hardees' principal offices are located, while Hardees can file suit in various jurisdictions, including where its principal offices are, where the franchisee resides or does business, or where the development territory or any franchised restaurant is or was located. Tennessee law generally applies, although Illinois franchisees are governed by Illinois law as per the Illinois Franchise Disclosure Act. These provisions are located in Sections 22.B and 22.A, respectively.