What outstanding obligations related to the Franchised Hardees Restaurants must be satisfied before a transfer can be approved?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) All of Developer's accrued monetary obligations to HR and its affiliates (whether arising under this Agreement or otherwise) and all other outstanding obligations related to the Franchised Restaurants (including, but not limited to, bills from suppliers, taxes, judgments and any required governmental reports, returns, affidavits or bonds) have been satisfied or, in the reasonable judgment of HR, adequately provided for.
HR reserves the right to require that a reasonable sum of money be placed in escrow to ensure that all of these obligations are satisfied.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, before a transfer of a Hardees franchise can be approved, all outstanding obligations related to the franchised restaurants must be satisfied. This includes all accrued monetary obligations to Hardees and its affiliates, whether arising under the agreement or otherwise.
These obligations also extend to bills from suppliers, taxes, judgments, and any required governmental reports, returns, affidavits, or bonds. Hardees retains the right to require a reasonable sum of money to be placed in escrow to ensure that all of these obligations are satisfied.
This requirement ensures that the Hardees brand is not negatively impacted by a transfer to a franchisee who is unable to meet the financial and legal obligations associated with operating the restaurant. It also protects suppliers and governmental entities by ensuring that outstanding debts and requirements are addressed before a transfer is finalized. For a prospective franchisee, this means ensuring all financial and legal matters are in order before seeking approval for a transfer.