For a Hardees franchise, is the franchisee required to purchase or lease and install all specified and required fixtures, equipment, furnishings and interior and exterior signs required for the Franchised Restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
terest. As used in this Agreement, construction shall have commenced only after Franchisee has obtained all required permits and: (a) with respect to a free-standing Franchised Restaurant, Franchisee has begun the installation of building footings with the intent to maintain continuous construction thereafter; or (b) with respect to a non free-standing Restaurant or a Restaurant being converted from a prior use, Franchisee has begun the installation of sub-floor plumbing with the intent to maintain continuous construction thereafter.
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").
Franchisee agrees, at its sole expense, to do or cause to be done the following, by the Opening Date:
- (1) Obtain and maintain all required building, utility, sign, health, sanitation, business and other permits and licenses applicable to the Franchised Restaurant.
- (2) Construct all required improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by HR.
- (3) Purchase or lease and install all specified and required fixtures, equipment, furnishings and interior and exterior signs required for the Franchised Restaurant.
- (4) Purchase an opening inventory for the Franchised Restaurant of only authorized and approved products and other materials and supplies.
D. Acquisition of Necessary Furnishings, Fixtures and Equipment
Franchisee agrees to use in the development and operation of the Franchised Restaurant only those fixtures, furnishings, equipment and signs that HR has approved for Hardee's Restaurants as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee further agrees to place or display at the Franchised Restaurant (interior and exterior) only those signs, emblems, lettering, logos and display materials that HR approves in writing from time to time.
Franchisee shall purchase or lease approved brands, types or models of fixtures, furnishings, equipment and signs only from suppliers designated or approved by HR, which may include HR.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the franchisee is responsible for purchasing or leasing and installing all specified and required fixtures, equipment, furnishings, and interior and exterior signs for the franchised restaurant. Specifically, the franchisee must ensure that the restaurant is furnished, equipped, and ready to open for business no later than 18 months after the Property Control Date. This includes obtaining all necessary permits and licenses, constructing required improvements, and purchasing an opening inventory of authorized products.
Hardees requires franchisees to use only approved fixtures, furnishings, equipment, and signs that meet the franchisor's standards for quality, design, appearance, function, and performance. Franchisees must also display only approved signs, emblems, lettering, logos, and display materials. If a franchisee proposes to use any unapproved items, they must submit specifications for approval, which Hardees will either approve or disapprove within 30 days.
The franchisee bears all costs, liability, and expenses for developing, constructing, and equipping the Hardees restaurant. Hardees will provide prototypical plans and specifications, but the franchisee is responsible for adapting these to the specific location and ensuring compliance with all applicable regulations. If any construction deviates from approved specifications without prior consent, Hardees has the right to delay the restaurant's opening until compliance is achieved, at the franchisee's expense.