Is a Hardees franchisee considered a third-party beneficiary with respect to the Regional Co-op obligations of other franchisees?

According to Hardees's 2025 Franchise Disclosure Document, a franchisee is not considered a third-party beneficiary regarding the Regional Co-op obligations of other franchisees. Hardees or its designee has the sole right, but not the obligation, to enforce the obligations of franchisees who are members of the Regional Co-op to contribute to the Regional Co-op.

This means that as a Hardees franchisee, you cannot sue another franchisee for not contributing to the Regional Co-op. Hardees retains the exclusive right to enforce these obligations. This protects Hardees's ability to manage the co-op and ensures that individual franchisees do not take legal action against each other regarding co-op contributions.

This arrangement is fairly common in franchising, where the franchisor typically manages and enforces system-wide standards and obligations to maintain consistency and brand integrity. It centralizes control and avoids potential conflicts between franchisees.

Therefore, while you are required to contribute to the Regional Co-op as determined by Hardees, you have no legal recourse against other franchisees who may not be fulfilling their contribution obligations. Hardees alone has the right to enforce those obligations.