Is the Operating Principal of a Hardees franchise required to devote full-time efforts to supervising the operation of the franchised restaurant, and if so, is there an exception?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Unless Franchisee has named, and HR has approved, a Multi-Unit Manager
- (a) The Operating Principal shall devote full-time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by HR or its affiliates) operated by Franchisee in the same geographic market as the Franchised Restaurant and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
- (b) Unless waived in writing by HR, the Operating Principal shall maintain his primary residence within a reasonable driving distance of the Franchised Restaurant.
- (4) The Operating Principal shall successfully complete the FMTP and any additional training required by HR.
- (5) HR shall have approved the Operating Principal, and not have later withdrawn that approval.
If the Operating Principal no longer meets these qualifications, Franchisee must provide HR written notice designating a qualified person to act as Operating Principal within 30 days after the date the prior Operating Principal ceases to be qualified. HR shall advise Franchisee whether it has approved the new Operating Principal within a reasonable time after receipt of Franchisee's notice. If HR does not approve the proposed Operating Principal, Franchisee will have 15 days from its receipt of notice of the decision to advise HR in writing of another person to act as Operating Principal who satisfies the preceding qualifications.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Operating Principal of a Hardees franchise is generally required to devote full-time and best efforts to supervising the operation of the franchised restaurant and other Hardees restaurants operated by the franchisee in the same geographic market. This individual should not engage in any other business or activity that demands substantial management responsibility. Additionally, unless Hardees waives it in writing, the Operating Principal must maintain their primary residence within a reasonable driving distance of the franchised restaurant.
However, there is an exception to the full-time requirement. If the franchisee has named and Hardees has approved a Multi-Unit Manager, the Operating Principal may not be required to devote full-time efforts. This exception allows for flexibility in managing multiple units, provided Hardees approves the designated manager.
It is important to note that Hardees must approve the Operating Principal, and this approval can be withdrawn later. If the Operating Principal no longer meets the qualifications, the franchisee must notify Hardees in writing within 30 days and designate a qualified replacement. Hardees then has a reasonable time to approve the new Operating Principal. If Hardees does not approve the proposed replacement, the franchisee has 15 days to suggest another candidate. This process ensures that a qualified individual is always in charge of the restaurant's operations.