If Hardees issues a sublease, does it contain financing terms?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor any of our agents or affiliates offer direct or indirect financing to you or guarantee any of your notes, leases or obligations. If you are purchasing one or more company-operated Restaurants, we will issue a Sublease for each site leased by us. The Sublease is a standard commercial lease under which you pay rent to us for use of the premises. The Sublease does not contain any financing terms. At the time of the closing of the transaction, you and we will execute, among other things and if appropriate, a Sublease for each Restaurant you purchase, the general form of which is attached as Exhibit P.
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if a franchisee is purchasing a company-operated restaurant from Hardees, Hardees will issue a sublease for the site if Hardees is leasing it. The FDD specifies that the sublease is a standard commercial lease where the franchisee pays rent to Hardees for using the property.
Importantly, the sublease provided by Hardees does not include any financing terms. The document also mentions that at the time of closing the transaction, the franchisee and Hardees will execute a sublease for each restaurant purchased, with the general form of the sublease attached as an exhibit.
This means a prospective Hardees franchisee should be prepared to secure their own financing to cover the costs associated with the sublease, as Hardees will not provide financing through the sublease agreement itself. It is important to carefully review the sublease agreement (Exhibit P) to fully understand the obligations and responsibilities as a tenant.