For a Hardees franchise, what date is considered the "Property Control Date"?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee has not previously provided HR with a fully-signed copy of its lease or sublease for the Franchised Location, or proof that Franchisee has purchased the real estate for the Franchised Location, Franchisee shall immediately upon execution of this Agreement provide HR with a copy of the fully-signed lease or sublease, together with the executed Hardee's Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Property Control Date is defined as either the effective date of the lease or sublease for the franchised location, or the closing date of the purchase of the real property. This date is significant because it marks the point from which certain obligations and timelines are measured.
Specifically, the Property Control Date triggers the start of the 18-month period within which the Hardees franchisee must complete construction and prepare the restaurant to open. Delays due to events constituting Force Majeure (defined in Section 28 of the franchise agreement) may extend this deadline. However, barring such events, the franchisee is responsible for obtaining permits, completing construction, purchasing and installing fixtures and equipment, and securing opening inventory by the Opening Date.
For a prospective Hardees franchisee, understanding the Property Control Date is crucial for project planning and execution. It sets a firm deadline for opening the restaurant and meeting all Hardees's requirements. Failing to meet this deadline could result in penalties or other consequences as outlined in the franchise agreement.