What information must a Hardees franchisee provide to HR when proposing a transfer?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee shall advise HR in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, submit a copy of all contracts and all other agreements or proposals and submit all other information requested by HR relating to the proposed Transfer. If HR does not exercise its right of first refusal pursuant to Section 18.J., the decision as to whether or not to consent to a proposed Transfer shall be made by HR in its sole discretion and shall include numerous factors deemed relevant by HR. These factors may include, but will not be limited to, the following:
- (1) The proposed transferee (and if the proposed transferee is not a natural person, all persons that have any direct or indirect interest in the transferee as HR may require) must demonstrate to HR's satisfaction extensive experience in high quality restaurant operations of a character and complexity similar to Hardee's Restaurants; must meet the managerial, operational, experience, quality, character and
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee must provide specific information to HR (Hardees's corporate entity) when proposing a transfer of ownership. The franchisee must inform HR in writing about the proposed transfer and ensure that the potential transferee submits a franchise application. Additionally, the franchisee needs to submit copies of all contracts, agreements, proposals, and any other information HR requests regarding the transfer.
HR's decision to approve or deny the transfer is at its sole discretion, considering various factors. These factors include the proposed transferee's experience in high-quality restaurant operations similar to Hardees, their managerial and operational standards, character, business reputation, credit rating, compatibility with HR's management culture, and adequate financial resources. The sales price must not jeopardize the transferee's ability to manage the restaurant and meet financial obligations.
Furthermore, all of the franchisee's outstanding financial obligations to Hardees and its affiliates must be satisfied or adequately provided for. The franchisee must not be in material default of any agreements with Hardees and must be in good standing. The franchisee or transferee must complete any required remodels or upgrades to conform to Hardees's current image. All parties involved, including the franchisee, individuals who executed the agreement, and guarantors, must execute a general release and covenant not to sue Hardees. Unless waived by Hardees, the transferee and designated employees must complete the required training programs. The transferee must also comply with all obligations under any existing development or franchise agreements with Hardees.