What is the length of the franchise term under the Hardees Development Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 1.A | The term is from the date of signing of the Development Agreement to the first to occur of: (1) the date that the last Franchised Restaurant required by the Development Schedule opens for business; or (2) the date the last Franchised Restaurant is required to be opened under the Development Schedule. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 64–69)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the length of the Development Agreement franchise term extends from the date of signing the agreement until the earlier of two conditions. The first condition is the date when the last franchised restaurant required by the Development Schedule opens for business. The second condition is the date the last franchised restaurant is required to be opened under the Development Schedule.
This means that the Development Agreement's term is tied directly to the franchisee's adherence to the agreed-upon development schedule. If a franchisee successfully opens all restaurants on or before the dates specified in the schedule, the agreement lasts until that final opening date. However, if a franchisee fails to meet the required opening dates, the agreement terminates on the date the last restaurant was supposed to be opened, regardless of whether it actually opened or not.
Prospective Hardees franchisees should carefully review the Development Schedule and assess their ability to meet its requirements. Failure to comply with the schedule can lead to termination of the Development Agreement, potentially resulting in the loss of development rights and any associated investments. This contrasts with the franchise agreement term, which is a fixed 20 years from the restaurant opening.