For a Hardees franchise developed under the Development Agreement, what is the deadline for delivering a fully-signed lease or proof of purchase for the Authorized Site to HR after HR's written acceptance of the site?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Franchised Restaurant to be developed during the Development Term, Developer shall first obtain HR's written acceptance of the site.
No later than 9 months after HR's written acceptance of the site, Developer shall deliver to HR a fully-signed lease or sublease for the Authorized Site (defined below) or proof of Developer's purchase of such site.
The effective date of the lease or sublease, or the closing day of the purchase of the real property, shall be the "Property Control Date".
Developer shall open the Franchised Restaurant no later than the Opening Date set forth in Appendix B.
Strict compliance with the Development Schedule is essential to this Agreement.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a developer must deliver a fully-signed lease or sublease, or proof of purchase for the authorized site, to HR (presumably Hardees's corporate entity) no later than 9 months after HR's written acceptance of the site. This requirement is part of the Development Schedule that the developer must adhere to. The effective date of the lease or sublease, or the closing day of the purchase of the real property, will be considered the "Property Control Date".
This timeline is crucial for prospective Hardees developers as strict compliance with the Development Schedule is essential to the Development Agreement. Failing to meet this deadline could potentially lead to breaches of the agreement. The developer needs to ensure that they have a site secured and the necessary documentation submitted within the specified timeframe to avoid any complications.
It is important to note that the acceptance of the site by Hardees does not guarantee any specific sales volume or profitability for the franchised restaurant. The developer bears the responsibility for ensuring the site is suitable for their business needs and complies with all applicable laws and regulations.