If a Hardees franchisee subleases the Franchised Location from HR, what is the timeframe for providing written notice of renewal?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) At the expiration of the Initial Term, Franchisee shall have an option to remain a franchisee at the Franchised Location for a Renewal Term of 10 years or, at Franchisee's option, 5 years. Franchisee must give HR written notice of whether or not it intends to exercise its renewal option and the length of the proposed Renewal Term not less than 12 months, nor more than 24 months, before the expiration of the Initial Term. Notwithstanding the foregoing, if Franchisee subleases the Franchised Location from HR, Franchisee must give HR the notice described in the preceding sentence not less than 6 months, nor more than 12 months, before notice of renewal is required to be provided to the landlord under the master lease. Failure by Franchisee to timely provide HR the required notice constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise for either 10 years or 5 years at the end of the initial term. Typically, the franchisee must provide Hardees Restaurants LLC (HR) with written notice of their intent to renew, specifying the desired renewal term length, between 12 and 24 months before the initial term expires.
However, if the Hardees franchisee subleases the franchised location from HR, the notification timeframe changes. In this case, the franchisee must provide HR with written notice of their renewal intention between 6 and 12 months before the date they are required to notify the landlord (HR) of their renewal under the master lease.
Failing to provide timely notice constitutes a waiver of the franchisee's option to renew, so it is crucial for franchisees to understand and adhere to these deadlines, especially when subleasing from HR, as the timeframe differs from the standard renewal notification period.