factual

If a Hardees Developer is a business entity, what documents must they furnish to HR?

Hardees Franchise · 2025 FDD

Answer 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.

If Developer is a business entity, Developer must furnish HR with a list of all holders of a direct or indirect ownership interest in Developer and their respective percentage interests. As of the date of this Agreement, all interests in Developer are owned as set forth in attached Appendix C. Developer shall comply with Section 10 prior to any change in ownership interests and shall update Appendix C as changes occur in order to ensure the information contained in Appendix C is true, accurate and complete at all times.

The requirements of this Section 8.C. shall apply only to Developer's Continuity Group (defined in Section 8.D.) if, as of the date of the first franchise-related agreement between Developer and HR or one of its affiliates, Developer was a publicly-held entity (i.e., an entity that has a class of securities traded on a recognized securities exchange or quoted on the inter-dealer quotation sheets known as the "pink sheets"). If Developer becomes a publicly-held entity after that date, it shall thereafter be required to update Appendix C only with respect to changes in ownership interests of members of the Continuity Group.

Source: Item 23 — Receipts (FDD pages 85–541)

What This Means (2025 FDD)

According to Hardees' 2025 Franchise Disclosure Document, if a Hardees Developer is a business entity, they must furnish HR with copies of the business's governing documents and any other corporate documents, books, or records that HR may request. Furthermore, the Developer must promptly provide copies to HR when any of these governing documents are modified or changed. The Developer's governing documents must ensure that no transfer of ownership can occur except in accordance with Section 10 of the agreement.

Additionally, the Hardees Developer must furnish HR with a list of all holders of a direct or indirect ownership interest in the Developer, including their respective percentage interests. This information should also be included in Appendix C of the agreement. The Developer is required to comply with Section 10 before any change in ownership interests and must update Appendix C to ensure the information remains true, accurate, and complete at all times.

However, if the Developer was a publicly-held entity on the date of the first franchise-related agreement between the Developer and HR, these requirements apply only to the Developer's Continuity Group. If the Developer becomes a publicly-held entity after that date, it is only required to update Appendix C with respect to changes in ownership interests of members of the Continuity Group.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.