If a Hardees franchisee relocates after losing possession, must they reimburse Hardees for expenses?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Our prior written consent is required before you relocate the Franchised Restaurant. If your right to possession of the Franchise Restaurant premises is lost through no act or failure to act on your part, you may relocate the Franchised Restaurant if: (1) we accept the new location; (2) you construct and equip a Franchised Restaurant at the new location in accordance with the then-current System standards and specifications; (3) a Franchised Restaurant at the new location is open to the public for business within 6 months after the loss of possession of the original franchised location; and (4) you reimburse us for all reasonable expenses actually incurred by us in connection with the acceptance of the new location.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Hardees for expenses if they relocate their franchise after losing possession of the original premises. Specifically, if the loss of possession occurred through no fault of the franchisee, they are permitted to relocate, subject to certain conditions.
These conditions include Hardees's approval of the new location and the franchisee's obligation to construct and equip a restaurant at the new site that meets the then-current system standards. Furthermore, the new Hardees restaurant must be open for business within six months of losing possession of the original location.
Most importantly, the franchisee must reimburse Hardees for all reasonable expenses actually incurred by Hardees in connection with the acceptance of the new location. This means that while Hardees allows relocation under specific circumstances, the franchisee bears the financial responsibility for Hardees's costs associated with approving the new site. This is a fairly typical requirement in franchise agreements, as franchisors want to ensure any new location meets their standards and protects the brand's image.