What happens to the monies in the Hardees Regional Co-op if it is terminated?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR or its designee shall have the right to terminate (and subsequently restart) the Regional Co-op. Upon termination, all monies in the Regional Co-op shall be spent for advertising and/or promotional purposes. HR or its designee shall have the sole right, but not the obligation, to enforce the obligations of franchisees who are members of the Regional Co-op to contribute to the Regional Co-op and neither Franchisee nor any other franchisees who contribute to the Regional Co-op shall be deemed a third party beneficiary with respect to the Regional Co-op obligations of other franchisees or have any right to enforce the obligation of any franchisee to contribute to the Regional Co-op.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, should Hardees or its designee terminate a Regional Co-op, all monies in the Regional Co-op must be spent on advertising and/or promotional purposes. Hardees or its designee has the right to terminate (and subsequently restart) the Regional Co-op.
Hardees, in its sole discretion, determines if a regional advertising and sales promotion cooperative will be established in the regional area where the franchised restaurant is located. The franchisee is required to be a member of the Regional Co-op and contribute to it. The amount is determined from time to time by Hardees and/or the Regional Co-op, which is specified in Appendix C as of the date of the agreement.
It is important to note that neither the franchisee nor any other franchisees who contribute to the Regional Co-op are considered third-party beneficiaries with respect to the Regional Co-op obligations of other franchisees. Therefore, franchisees do not have the right to enforce the obligation of any franchisee to contribute to the Regional Co-op.