Does Hardees maintain ownership interests in its franchisees?

According to Hardees's 2025 Franchise Disclosure Document, Hardees does not maintain ownership interests in its franchisees. The FDD states that franchisees have the power to direct the activities that most significantly impact their economic performance. As a result, Hardees does not consider itself the primary beneficiary of any franchise entity that might be a variable interest entity. This arrangement is typical in many franchise systems, where franchisees operate as independent business owners under the franchisor's brand and system.

This lack of ownership interest means that Hardees franchisees generally retain significant control over their individual business operations. They are responsible for managing day-to-day activities and driving their restaurant's financial performance. Hardees focuses on supporting the brand through advertising, supply chain management, and overall system standards, while the franchisee manages their specific location.

This structure also implies that Hardees's assets are not used as collateral for the debts or obligations of its franchisees. Franchisees are responsible for securing their own financing and managing their own liabilities. This separation of financial interests protects Hardees from the financial risks associated with individual franchise operations. Prospective franchisees should carefully consider the implications of this independent ownership model, including the responsibilities and risks involved in managing their own business.