For a Hardees franchise, what is the deadline for completing construction and making the Franchised Restaurant ready to open for business, barring events constituting Force Majeure?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Once construction has commenced, it shall continue uninterrupted (except for interruption by reason of events constituting Force Majeure as defined in Section 28) until completed. If events constituting Force Majeure cause a delay in the commencement of construction of the Franchised Restaurant, HR shall proportionately extend the Opening Date for the Franchised Restaurant. Notwithstanding the occurrence of any events, except events constituting Force Majeure, construction shall be completed and the Franchised Restaurant shall be furnished, equipped and shall otherwise be ready to open for business in accordance with this Agreement not later than 18 months after the date of the Property Control Date ("Opening Date").
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, construction must be completed, and the restaurant furnished, equipped, and ready to open no later than 18 months after the Property Control Date, unless delays occur due to events constituting Force Majeure. The Property Control Date is not defined in the provided excerpts.
This means a prospective Hardees franchisee has a year and a half to get their location fully operational from the date they secure control of the property. This timeframe is subject to external, uncontrollable delays as defined in Section 28 of the franchise agreement.
It is important for a potential Hardees franchisee to understand what constitutes the Property Control Date, as this sets the clock ticking. They should also review Section 28 to fully understand what events would qualify as Force Majeure and allow for an extension to the 18-month deadline.