If the Hardees Developer is a business entity, what activities must the Developer's governing documents limit them to, unless waived in writing by HR?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is a business entity, Developer shall furnish HR with copies of Developer's governing documents and any other corporate documents, books or records that HR may request. When any of these governing documents are modified or changed, Developer promptly shall provide copies to HR. Developer's governing documents must provide that no Transfer (as defined in Section 10.A.) may be made except in accordance with Section 10.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if the Hardees Developer is a business entity, the Developer must furnish Hardees with copies of the Developer's governing documents. When any of these governing documents are modified or changed, the Developer must promptly provide copies to Hardees.
The FDD states that the Developer's governing documents must provide that no Transfer (as defined in Section 10.A.) may be made except in accordance with Section 10. Section 10 likely outlines the specific procedures and conditions under which a transfer of ownership or control can occur, ensuring Hardees retains oversight and approval rights.
This requirement ensures that Hardees maintains control over who becomes a Hardees Developer and that any changes in ownership or control adhere to Hardees's standards and procedures. A prospective Hardees franchisee should carefully review Section 10 of the franchise agreement to fully understand the transfer restrictions and requirements.