If a Developer proposes a Transfer, what information must be submitted to Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Developer shall advise HR in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, and submit a copy of all contracts and all other agreements or proposals, and all other information requested by HR, relating to the proposed Transfer.
If HR does not exercise its right of first refusal pursuant to Section 10.J., the decision as to whether or not to consent to a proposed Transfer shall be made by HR in its sole discretion and shall include numerous factors deemed relevant by HR.
These factors may include, but will not be limited to, the following:
- (1) The proposed transferee (and if the proposed transferee is not a natural person, all persons that have a direct or indirect interest in the transferee as HR may require) must demonstrate to HR's satisfaction that it has extensive experience in high quality restaurant operations of a character and complexity similar to the restaurants franchised by HR or its affiliates; must meet the managerial, operational, experience, quality, character and business standards for a developer promulgated by HR from time to time; must possess a good character, business reputation and credit rating; must have an organization whose management culture is compatible with HR's management culture; and must have adequate financial resources and working capital, as determined by HR in its sole discretion, to meet Developer's development obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, if a Developer proposes a transfer of their agreement, they must inform Hardees in writing. The Developer (or the proposed transferee) needs to submit a franchise application for the proposed transferee. Additionally, they must provide Hardees with copies of all contracts, agreements, proposals, and any other information Hardees requests related to the proposed transfer.
Hardees retains significant discretion over whether to approve the transfer. If Hardees chooses not to exercise its right of first refusal, the decision to consent to the transfer is made at Hardees' sole discretion. Hardees will consider numerous factors, including the transferee's experience in high-quality restaurant operations, their managerial and operational standards, character, business reputation, credit rating, compatibility with Hardees' management culture, and adequate financial resources to meet the development obligations.
This process ensures that any potential new Hardees developer meets the standards and qualifications necessary to successfully operate and expand the Hardees brand. It protects Hardees' interests by ensuring that the transferee has the financial stability and operational expertise to maintain the quality and reputation of the Hardees system. The detailed review process and the right of first refusal provide Hardees with control over who becomes a Hardees developer, safeguarding the brand's future growth and success.