What happens if a Hardees franchisee fails to commence construction of the Franchised Restaurant within 6 months after the Property Control Date?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You must commence construction of the Franchised Restaurant within 6 months after the Property Control Date. If you fail to commence construction of the Franchised Restaurant as required, our site acceptance will be deemed withdrawn without providing you notice, and we will have the right to terminate the Franchise Agreement, if already fully-executed.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 44–57)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee must commence construction of their restaurant within 6 months after the Property Control Date, which is the date the lease or sublease is executed. If the franchisee fails to begin construction within this timeframe, Hardees will deem their site acceptance withdrawn without notice.
Furthermore, Hardees retains the right to terminate the Franchise Agreement if it has already been fully executed. This means that the franchisee could lose the rights to their franchise and any associated investments if they do not meet the construction deadline.
This stipulation underscores the importance of careful planning and execution in the initial stages of opening a Hardees franchise. Prospective franchisees should ensure they have secured adequate financing, permits, and contractors to meet the construction timeline. Failure to do so could result in significant financial losses and the termination of the franchise agreement.