If I am a Hardees franchisee, what role must I designate and have approved for the Franchised Restaurant's operation?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ct to this confidentiality requirement. You also agree not to contest our interest in the trade secrets and confidential and proprietary information that comprise the Hardee's System.
We are not required by any agreement to protect or defend copyrights or confidential information, although we intend to do so as appropriate.
ITEM 15
OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You are not obligated to participate personally in the direct operation of the Franchised Restaurant; however, you must designate, and we must approve, a qualified individual to serve as the "Operating Principal" of your Franchised Restaurant. If you sign a Development Agreement, you must designate, and we must approve, a qualified individual to serve as your "Development Principal."
The Operating Principal must own at least a 10% equity ownership interest in you, or in your general partner if you are a limited partnership, unless modified by us in our sole discretion, and be a person acceptable to both us and you. (This requirement does not apply if you were a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between you and us.) The Operating Principal must be a member of the Continuity Group and have full control over the day-to-day activities of the Franchised Restaurant and those other restaurants (that are franchised by us or our affiliates) operated by you in the same geographic market as the Franchised Restaurant, including control over the standards of operation and financial performance. Unless you have named, and we have approved, a Multi-Unit Manager (discussed below), the Operating Principal must: (1) devote full time and best efforts to the supervision and conduct of the Franchised Restaurant and those other restaurants (that are franchised by us or our affiliates) operated by you in the same geographic market as the Franchised Restaurant; and (2) maintain his/her primary residence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by us. The Operating Principal will be required to successfully complete the FMTP and any additional training required by us. If you operate restaurants in multiple markets that are franchised by us or our affiliates, an individual meeting the above qualifications will serve as the Operating Principal in at least one market.
If you operate restaurants that are franchised by us or our affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager will be under the supervision of the Operating Principal. The Multi-Unit Manager must devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by us or our affiliates) operated by you in the same geographic market, successfully complete the FMTP and any additional training required by us, and be approved by us.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 62–63)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, while franchisees are not required to personally manage their Hardees restaurant, they must designate an Operating Principal for the franchised restaurant. This individual must be qualified and approved by Hardees.
The Operating Principal is required to possess at least a 10% equity ownership in the franchisee's business, unless Hardees modifies this requirement at their discretion or if the franchisee was a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity when the franchise agreement was initiated. The Operating Principal must be part of the Continuity Group, which includes key stakeholders, and have full authority over the restaurant's daily operations, standards, and financial performance, along with any other Hardees franchises the franchisee operates in the same market.
Unless a Multi-Unit Manager is approved, the Operating Principal must dedicate their full time and effort to managing the Hardees restaurant and any other Hardees franchises in the same area. They also need to live within a reasonable driving distance of the restaurant, unless Hardees provides a written waiver. The Operating Principal is required to successfully complete the Franchise Management Training Program (FMTP) and any additional training that Hardees requires. If a franchisee operates Hardees restaurants in multiple markets, the same individual can serve as the Operating Principal for at least one market. The restaurant must be supervised on-site by the Operating Principal, a Multi-Unit Manager, a General Manager, or a Site Manager, all of whom must meet Hardees' training qualifications. Franchisees must also employ at least one General Manager and enough employees who have completed the FMTP to ensure compliance with Hardees' system standards. If the number of trained personnel falls below the required level, the franchisee has 30 days to hire and enroll new staff in the FMTP. It is important to note that managers are not required to have equity in the franchise.