What information must a Hardees franchisee submit 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 HR with specific documentation 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 based on several factors, including the transferee's experience in high-quality restaurant operations, their managerial and operational capabilities, and their financial resources. The sales price must not jeopardize the transferee's ability to maintain and operate the Hardees restaurant. The franchisee must also ensure that all outstanding obligations to Hardees and its affiliates are satisfied.
Prior to the transfer's completion, the franchisee may need to pay a transfer fee of up to $2,500 per restaurant. Both the franchisee and the proposed transferee will be required to execute an assignment agreement and any necessary amendments to the franchise agreement. The transferee may also need to complete training programs, and both parties must sign a general release and covenant not to sue Hardees. These requirements ensure that the new franchisee meets Hardees's standards and protects the brand's interests.
If the current franchisee receives a legitimate offer from a third party, Hardees retains the right of first refusal. This means Hardees can choose to purchase the franchise interest on the same terms offered by the third party. This provision allows Hardees to maintain control over who joins their franchise system and ensures that any transfer aligns with their strategic goals.