For Hardees franchisees, what is the stated purpose for Hardees' right to approve restaurant plans and inspect construction work?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the right of HR to approve the Plans and to inspect the construction work at the Franchised Restaurant, HR and its designees shall have no liability or obligation with respect to the Franchised Location, the design or construction of the Franchised Restaurant or the furnishings, fixtures and equipment to be acquired; HR's rights being exercised solely for the purpose of ensuring compliance with the terms and conditions of this Agreement.
Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from HR that it has approved the Plans. All construction must be in accordance with Plans approved by HR and must comply in all respects with applicable laws, ordinances and local rules and regulations. The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by HR, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time. HR may furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees retains the right to approve restaurant plans and inspect construction work to ensure compliance with the terms and conditions of the franchise agreement. This means Hardees wants to make sure the restaurant is built according to their standards and specifications. While Hardees has the right to approve plans and inspect construction, they assume no liability or obligation regarding the location, design, or construction of the restaurant. The franchisee is ultimately responsible for these aspects.
Hardees provides prototypical plans and specifications for a Hardee's Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront, and color scheme. The franchisee is responsible for preparing all required construction plans and specifications to suit the location's shape and dimensions, ensuring compliance with applicable ordinances, building codes, permit requirements, and lease restrictions. Franchisees must use registered architects, registered engineers, and professional and licensed contractors.
Before starting any site preparation or construction, franchisees must receive written notification from Hardees that their plans have been approved. All construction must adhere to the approved plans and comply with all applicable laws, ordinances, and local rules and regulations. If construction does not substantially comply with the approved plans, the restaurant may not open, and the franchise agreement may be terminated if the non-compliance is not resolved within a reasonable time. Hardees may offer guidance during the development process and periodically inspect the premises.