What information must a potential Hardees franchisee agree to keep confidential under the Preliminary Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not currently a franchisee, HR also may require you to sign a Preliminary Agreement (the current form is attached as Exhibit E) under which you must agree to keep confidential the information provided by HR to you during Discovery Day. During Discovery Day, you must attend a 2-day meeting at HR's offices and at a Hardee's Restaurant during which you will meet with, and be evaluated by, various HR personnel. In addition, we may require that your 10% Owners (as defined in Item 15) complete, as we deem necessary and to our satisfaction, an operations overview, which lasts approximately 10 business days ("10-Day Operations Overview").
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–22)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if you are not already a franchisee, Hardees may require you to sign a Preliminary Agreement. Under this agreement, you must agree to keep confidential the information provided to you by Hardees during Discovery Day. Discovery Day involves attending a 2-day meeting at Hardees's offices and a Hardees Restaurant, where you will meet with and be evaluated by Hardees personnel.
This confidentiality requirement is a standard practice in franchising. Franchisors like Hardees share sensitive business information with potential franchisees during the evaluation process. This information can include operational details, financial performance data, marketing strategies, and trade secrets. Requiring confidentiality protects Hardees from having its proprietary information disclosed to competitors or used in ways that could harm the brand.
For a prospective Hardees franchisee, this means understanding that any information received during Discovery Day must be treated as confidential. You cannot share this information with third parties, including potential investors or business advisors, without Hardees's permission. Violating the confidentiality agreement could have legal and financial consequences. It is important to carefully review the Preliminary Agreement and understand the scope of the confidentiality obligations before signing it.
While the FDD mentions the Preliminary Agreement and the confidentiality requirement, it does not specify the exact types of information disclosed during Discovery Day that must be kept confidential. A prospective franchisee should ask Hardees for a copy of the Preliminary Agreement to review its specific terms and conditions. Additionally, it would be prudent to inquire about the specific types of information that will be disclosed during Discovery Day and what measures Hardees takes to protect its confidential information.