For a Hardees franchise, what condition applies to the transferee and their affiliates who have existing development or franchise agreements with HR or its affiliates, as of the date of the request for HR's consent to the transfer?

According to Hardees's 2025 Franchise Disclosure Document, if a Hardees developer seeks to transfer their rights, the transferee and their affiliates must be in full compliance with all existing obligations to Hardees or its affiliates under any development or franchise agreements they have in place. This compliance is assessed as of the date Hardees receives the request for consent to the transfer.

This requirement ensures that Hardees maintains a consistent standard of operational and financial responsibility across its franchise network. Any existing issues or defaults within the transferee's other Hardees ventures could negatively impact the performance and reputation of the franchise being transferred. Hardees wants to avoid bringing on new franchisees who have a history of non-compliance or financial instability within the system.

For a prospective Hardees franchisee, this means that any existing Hardees franchises or development agreements held by the transferee or their affiliates will be closely scrutinized for compliance. Any outstanding debts, unresolved disputes, or failures to meet brand standards could jeopardize the transfer. It is crucial for both the transferor and transferee to ensure that all related Hardees ventures are in good standing before seeking approval for the transfer.

This condition protects Hardees's interests by preventing the transfer of franchise rights to parties who may pose a risk to the brand. It also provides a level of assurance to other franchisees within the Hardees system that new operators meet the same standards of compliance and financial responsibility.