If purchasing a company-operated Hardees restaurant, will Hardees issue a sublease?
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' 2025 Franchise Disclosure Document, if a franchisee is purchasing one or more company-operated restaurants, Hardees will issue a sublease for each site that Hardees itself leases. The sublease is a standard commercial lease where the franchisee pays rent to Hardees for using the premises.
The sublease agreement does not include any financing terms. The FDD states that at the time of closing the transaction, the franchisee and Hardees will execute a sublease for each restaurant purchased, if appropriate. An example of the general form of the sublease is included as Exhibit P to the Franchise Disclosure Document.
This arrangement is fairly typical in franchise acquisitions where the franchisor controls the real estate. It allows Hardees to maintain some control over the locations and ensure consistent brand standards are upheld. The franchisee benefits by not having to directly negotiate a lease with the property owner, as Hardees has already established the terms.