Who may fulfill Hardees' duties and obligations under existing and future Franchise Agreements and Development Agreements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
As noted in Item 1, pursuant to the Management Agreement, CKR, at all times acting on our behalf, may fulfill all of our duties and obligations under all existing and future Franchise Agreements and Development Agreements, including managing the Hardee's Systems; marketing and offering new and renewal Franchise Agreements and Development Agreements as our franchise broker; training franchisees and their employees; and providing the required support to franchisees. Pursuant to the same Management Agreement, CKR also fulfills all of CJR's duties and obligations under all existing and future franchise agreements and development agreements for Carl's Jr. Restaurants, which are quick service restaurants identified in whole or in part by the name "Carl's Jr." Except in limited circumstances, Hardee's Restaurants are not located in same geographic area as Carl's Jr. Restaurants. In the limited circumstances where there is overlap, CJR and its franchisees may solicit or accept orders within the same area served by Restaurants operated by Hardee's franchisees, and any potential conflict between the franchisees of each system will be resolved on a case by case basis. As noted in Item 1, the principal place of business CKR and CJR is the same as ours.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, CKR, acting on Hardees's behalf, has the authority to fulfill all of Hardees's duties and obligations under existing and future Franchise Agreements and Development Agreements. This includes managing the Hardees system, marketing and offering new and renewal agreements as Hardees's franchise broker, training franchisees and their employees, and providing the necessary support to franchisees.
CKR also fulfills all of CJR's duties and obligations under all existing and future franchise agreements and development agreements for Carl's Jr. Restaurants. Hardee's Restaurants are generally not located in the same geographic area as Carl's Jr. Restaurants, but in limited cases where there is overlap, CJR and its franchisees may solicit or accept orders within the same area served by Restaurants operated by Hardee's franchisees. Any potential conflicts between the franchisees of each system will be resolved on a case-by-case basis.
This arrangement means that while franchisees contract directly with Hardees, CKR handles many of the franchisor's operational and support functions. This is a fairly common arrangement in franchising, where a parent company may use a subsidiary or affiliate to manage specific aspects of the franchise system. Prospective franchisees should understand the roles and responsibilities of both Hardees and CKR to ensure they know who to contact for different types of support and assistance.