Does HR's decision regarding a Hardees franchise transfer create any liability to the franchisee or proposed transferee if HR withholds consent?

According to Hardees's 2025 Franchise Disclosure Document, Hardees's decision regarding a proposed franchise transfer does not create liability for either the franchisee or the proposed transferee if Hardees withholds its consent. This means that if Hardees decides not to approve a transfer, neither the current franchisee looking to sell nor the potential buyer can hold Hardees liable for any resulting financial or business consequences.

This provision protects Hardees from potential lawsuits or claims arising from their decision-making process regarding franchise transfers. Hardees retains the right to refuse a transfer based on various factors, as outlined in the franchise agreement, without fear of legal repercussions from the parties involved in the proposed transaction.

However, Hardees retains the right to communicate and counsel with both the franchisee and the proposed transferee regarding any aspect of the proposed transfer without incurring any liability. This allows Hardees to provide guidance and express concerns without opening themselves up to legal challenges. Prospective franchisees should carefully consider this clause, as it underscores Hardees's control over franchise transfers and limits recourse if a transfer is denied.