Is Hardees obligated to review a development proposal if the franchisee is not in full compliance with all agreements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
a)** HR's site selection guidelines and, as you may request, a reasonable amount of consultation with respect to site selection; and (b) onsite evaluation that we may deem advisable as part of our evaluation of your request for site acceptance. (Development Agreement, § 5.B and Franchise Agreement, § 4.B.)
- 2. Advise you in writing, within 45 days after our receipt of all documents that we require, whether we have accepted a particular site; however, we have no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with us or our affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. (Development Agreement, § 5.D and Franchise Agreement, § 4.D.)
- 3. Provide you electronic access to, the OPM, which contains information and knowledge that is unique, necessary and material to the Hardee's System. The OPM remains our property. We may revise the contents of the OPM, and you agree to comply with each new or changed section. (Franchise Agreement, § 9.) The Table of Contents of the OPM as of the date of this disclosure document is attached as Exhibit G. As of that date, the OPM contained approximately 224 pages.
- 4. Provide our FMTP to up to 8 individuals. The details of the FMTP are described later in this Item. (Franchise Agreement, § 11.A.)
- 5. Provide you with any development training that we may require. (Development Agreement, § 5.G and Franchise Agreement, § 4.A.)
- 6. Provide you electronic access to, the Development Guide, which contains mandatory specifications and standards relating to construction of Hardee's Restaurants and information relating to your other obligations under the Development Agreement.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 44–57)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees is not obligated to review any development proposal if a franchisee or their affiliates are not in full compliance with all agreements with Hardees or its affiliates. This applies both to the initial site acceptance process described in the Development Agreement and Franchise Agreement, as well as to subsequent submissions of Franchise Site Applications.
This stipulation means that a franchisee must maintain good standing with Hardees to receive assistance with site selection and development. Failure to comply with any agreement, such as timely payments or adherence to operational standards, could result in Hardees declining to review a proposed site. This could significantly delay or impede a franchisee's ability to open new Hardees restaurants.
For a prospective Hardees franchisee, this underscores the importance of understanding and adhering to all contractual obligations. Maintaining compliance is not only essential for the ongoing operation of existing restaurants but also for future growth and development opportunities within the Hardees system. Franchisees should ensure they have systems in place to track and meet all requirements outlined in their agreements with Hardees.