If Hardees requires a franchisee to modernize, how long does the franchisee have to prepare and complete drawings and plans, along with a project timeline?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required: (i) as a condition of renewal, (ii) as a condition of HR issuing its consent to a proposed transfer as defined further in Section 18 below, or (iii) at HR's request (but not more often than every 5 years). Capital expenses necessary for the repair and maintenance of the Franchised Location and modifications required by applicable law or required to abate a hazardous situation are not subject to the time limitations described in the preceding sentence. Within 60 days after receipt of HR's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans, along with a project timeline, for the required modernization. These drawings and plans must be submitted to, and their use approved by, HR prior to the commencement of work. Franchisee shall complete the required modernization within the time reasonably specified by HR in its written notice.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, if Hardees requires a franchisee to modernize their restaurant to conform to the image of the Hardees system, the franchisee has 60 days after receiving written notice to prepare and complete drawings and plans, including a project timeline, for the required modernization. These plans must be submitted to Hardees for approval before work begins.
Hardees can request modernization of a restaurant no more than once every five years, or as a condition of renewal or transfer. However, capital expenses for repairs, maintenance, or modifications required by law or to abate a hazardous situation are not subject to these time limitations.
It is important to note that the franchisee is responsible for completing the modernization within a timeframe that Hardees reasonably specifies in its written notice. This means that while the franchisee has a set time to prepare the plans, the overall modernization timeline is subject to Hardees' discretion, requiring franchisees to carefully consider the potential costs and time commitments associated with such upgrades.