Can a Hardees franchisee relocate their Franchised Restaurant, and if so, under what conditions and who bears the expenses?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may not operate the Franchised Restaurant at any site other than the Franchised Location or offer and sell products through any other method or channel of distribution. Further, Franchisee may not relocate the Franchised Restaurant without HR's prior written consent, which may be withheld by HR in its sole discretion. If HR approves a relocation of the Franchised Restaurant, it shall have the right to charge Franchisee for all reasonable expenses actually incurred in connection with consideration of the relocation request.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee may not relocate their franchised restaurant without prior written consent from Hardees. This consent can be withheld at Hardees's discretion.
If Hardees approves the relocation, the franchisee is responsible for paying all reasonable expenses that Hardees actually incurs while considering the relocation request. This means that Hardees has the right to charge the franchisee for costs associated with evaluating the proposed new location and the potential impact on the Hardees brand.
This requirement is fairly standard in franchising, as franchisors want to maintain control over their brand's image and market presence. Relocating without approval could negatively impact the Hardees brand if the new location is not suitable or does not meet Hardees's standards. Franchisees should carefully consider these potential relocation expenses and the risk of denial when evaluating a Hardees franchise opportunity.