Does Hardees place any restrictions on where I can advertise or solicit customers for my Hardees Franchised Restaurants, besides internet restrictions mentioned in Item 13?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
estaurant at the new location in accordance with the then-current System standards and specifications; (3) a Franchised Restaurant at the new location is open to the public for business within 6 months after the loss of possession of the original franchised location; and (4) you reimburse us for all reasonable expenses actually incurred by us in connection with the acceptance of the new location.
You may only sell or distribute products identified by some or all of the Proprietary Marks from the Franchised Location; you may not use any other method or channel of distribution. We do not impose any geographic restrictions on your ability to solicit customers; however, see Item 13 for internet restrictions. In addition, you must participate in all online ordering and delivery programs that we may designate from time to time and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions. There are no restrictions on our ability to solicit customers, nor must we compensate you for soliciting or accepting orders. We reserve all rights to use and license the Hardee's System, and the Proprietary Marks other than those that we expressly grant you. We reserve the right to merchandise and distribute goods and services identified by the Proprietary Marks (or different proprietary marks) through any method or channel of distribution, including the internet.
As noted in Item 1, pursuant to the Management Agreement, CKR, at all times acting on our behalf, may fulfill all of our duties and obligations under all existing and future Franchise Agreements and Development Agreements, including managing the Hardee's Systems; marketing and offering new and renewal Franchise Agreements and Development Agreements as our franchise broker; training franchisees and their employees; and providing the required support to franchisees. Pursuant to the same Management Agreement, CKR also fulfills all of CJR's duties and obligations under all existing and future franchise agreements and development agreements for Carl's Jr. Restaurants, which are quick service restaurants identified in whole or in part by the name "Carl's Jr." Except in limited circumstances, Hardee's Restaurants are not located in same geographic area as Carl's Jr. Restaurants. In the limited circumstances where there is overlap, CJR and its franchisees may solicit or accept orders within the same area served by Restaurants operated by Hardee's franchisees, and any potential conflict between the franchisees of each system will be resolved on a case by case basis. As noted in Item 1, the principal place of business CKR and CJR is the same as ours.
Except as described in Item 1, we do not operate or franchise, or currently plan to operate or franchise, any business under a different trademark that sells or will sell goods or services similar to those that our franchisees sell.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees does not place geographic restrictions on a franchisee's ability to solicit customers for their Franchised Restaurants, outside of the internet restrictions detailed in Item 13. However, Hardees franchisees must participate in any online ordering and delivery programs that Hardees designates and comply with the programs' terms and conditions, including any geographic or other delivery restrictions. Hardees retains the right to solicit customers without compensating the franchisee. Hardees also reserves all rights to use and license the Hardees system and proprietary marks.
Under the Development Agreement, Hardees franchisees do not receive an exclusive territory and may face competition from other franchisees, outlets that Hardees owns, or other channels of distribution or competitive brands that Hardees controls. There are no restrictions on the areas in which Hardees may advertise or solicit customers, nor must Hardees compensate franchisees for soliciting or accepting orders from inside the Development Territory. Hardees retains the right to use any other channel of distribution, including the internet, to make sales in the Development Territory using the Proprietary Marks or different proprietary marks.
Under the Franchise Agreement, Hardees franchisees do not receive any exclusive territory and may face competition from other franchisees, outlets that Hardees owns and/or operate, or from other channels of distribution or competitive brands that Hardees controls. Franchisees do not receive any right under the Franchise Agreement to develop additional Franchised Restaurants. Prior written consent from Hardees is required before a franchisee can relocate the Franchised Restaurant. If a franchisee's right to possession of the Franchise Restaurant premises is lost through no act or failure to act on their part, they may relocate the Franchised Restaurant if certain conditions are met, including Hardees accepting the new location, the franchisee constructing and equipping a Franchised Restaurant at the new location in accordance with the then-current System standards and specifications, a Franchised Restaurant at the new location being open to the public for business within 6 months after the loss of possession of the original franchised location, and the franchisee reimbursing Hardees for all reasonable expenses actually incurred by Hardees in connection with the acceptance of the new location.