Can HR communicate and counsel with the Hardees franchisee and proposed transferee regarding the proposed transfer?

According to Hardees's 2025 Franchise Disclosure Document, Hardees (referred to as HR in the document) has the right to communicate and counsel with both the franchisee and the proposed transferee regarding any aspect of the proposed transfer of the franchise. This communication and counseling can occur without any liability to Hardees. This means Hardees can freely discuss the transfer with both parties, offering advice or raising concerns, without fear of being held responsible for the outcome of the transfer.

This provision protects Hardees from potential legal claims that could arise if either the franchisee or the transferee feels that Hardees's input led to a negative outcome, such as the transferee experiencing financial difficulties after the transfer or the franchisee feeling disadvantaged by Hardees's decision-making process. It allows Hardees to maintain open communication and provide guidance during the transfer process without assuming undue risk.

For a prospective Hardees franchisee, this clause indicates that Hardees intends to play an active role in the transfer process. While Hardees's input is not a guarantee of success, it does suggest that they will provide some level of support and guidance to both the franchisee and the transferee. This could be beneficial for ensuring a smooth transition and maintaining the standards of the Hardees brand. However, franchisees should also be aware that Hardees's counseling does not create any liability for Hardees, meaning they are not responsible for the financial outcomes of the transfer for either party.