If the governing documents of a Hardees franchisee's business entity are modified, what is the franchisee's obligation?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a business entity, Franchisee shall furnish HR with copies of Franchisee'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, Franchisee promptly shall provide copies to HR.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, if a franchisee operates as a business entity (corporation, LLC, partnership, etc.) and modifies its governing documents, the franchisee must promptly provide copies of the updated documents to Hardees. This requirement ensures that Hardees is kept informed of any changes to the franchisee's organizational structure or operational guidelines.
This obligation is part of Hardees' broader effort to maintain oversight and control over its franchisees' operations. By requiring franchisees to submit updated governing documents, Hardees can verify that the franchisee continues to meet the brand's standards and adheres to the franchise agreement. This also allows Hardees to confirm that the franchisee's activities remain exclusively focused on Hardee's restaurants or other restaurants franchised by Hardees or its affiliates, as initially represented in the franchise agreement.
For a prospective Hardees franchisee, this means that any changes to their company's operating agreement, articles of incorporation, or partnership agreements must be promptly disclosed to Hardees. Failing to do so could potentially result in a breach of the franchise agreement. Therefore, franchisees should establish internal procedures to ensure that Hardees receives these documents in a timely manner whenever modifications occur.