Is a Hardees franchisee required to inform HR in writing of any proposed transfer?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee shall advise HR in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, submit a copy of all contracts and all other agreements or proposals and submit all other information requested by HR relating to the proposed Transfer. If HR does not exercise its right of first refusal pursuant to Section 18.J., the decision as to whether or not to consent to a proposed Transfer shall be made by HR in its sole discretion and shall include numerous factors deemed relevant by HR. These factors may include, but will not be limited to, the following:
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee must advise HR (presumably Hardees's HR department) in writing of any proposed transfer of the franchise. This requirement is detailed within the section concerning transfers by the franchisee. Notification must include submitting a franchise application from the proposed transferee, copies of all related contracts, agreements, proposals, and any other information HR requests regarding the transfer.
This requirement ensures that Hardees maintains control over who becomes a franchisee and that any new franchisee meets their standards. Hardees reserves the right to assess the proposed transferee's experience, operational capabilities, character, and financial resources. They also evaluate whether the sale price jeopardizes the transferee's ability to manage the restaurant and meet financial obligations.
Hardees also has the right of first refusal, allowing them to purchase the franchisee's interest on the same terms offered by a third party. This provision enables Hardees to maintain brand consistency and quality by carefully selecting new franchisees. The written notification requirement is a critical step in the transfer process, ensuring transparency and allowing Hardees to thoroughly evaluate the proposed transfer before it occurs.
Failure to comply with this written notification requirement, or attempting to transfer the franchise without prior written consent from Hardees, constitutes a material breach of the franchise agreement. This breach could lead to termination of the agreement without an opportunity to remedy the situation, highlighting the importance of adhering to the outlined transfer procedures.