For a Hardees franchise, what are the required actions the franchisee must complete prior to the Construction Commencement Date?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the Construction Commencement Date, Franchisee shall have: (1) eliminated or otherwise satisfied all of the conditions set forth in this Agreement (2) paid HR the balance, if any, of the Initial Franchise Fees required by this Agreement; (2) if not previously signed, executed this Franchise Agreement; (3) provided HR a copy of the fully-executed lease for the Franchised Location (containing those provisions specified by HR in accordance with Section 3) or, if Franchisee owns the Franchised Location, proof of Franchisee's ownership interest. 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.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, before starting construction on a Hardees restaurant, a franchisee must fulfill several obligations. First, the franchisee needs to satisfy all conditions outlined in the Franchise Agreement. This ensures that all preliminary requirements, such as securing financing or completing initial training, are met before construction begins.
Second, the franchisee must pay Hardees the remaining balance of the initial franchise fees, if any amount is still due. This financial obligation must be settled to ensure the franchisee is in good standing before commencing construction. Third, if not already completed, the franchisee must formally execute the Franchise Agreement, solidifying the contractual relationship between the franchisee and Hardees.
Finally, the franchisee must provide Hardees with a copy of the fully-executed lease for the restaurant location, including specific provisions required by Hardees, or provide proof of ownership if the franchisee owns the location. Commencement of construction is defined as obtaining all required permits and beginning the installation of building footings for free-standing restaurants, or the installation of sub-floor plumbing for non-free-standing restaurants or conversions, with the intent to maintain continuous construction thereafter.