Is prior written consent required from Hardees before a franchisee relocates the Franchised Restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive any exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own and/or operate, or from other channels of distribution or competitive brands that we control. You do not receive any right under the Franchise Agreement to develop additional Franchised Restaurants. Our prior written consent is required before you relocate the Franchised Restaurant. If your right to possession of the Franchise Restaurant premises is lost through no act or failure to act on your part, you may relocate the Franchised Restaurant if: (1) we accept the new location; (2) you construct and equip a Franchised Restaurant 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.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee needs prior written consent from Hardees before relocating their franchised restaurant. This requirement is outlined in the Franchise Agreement section of Item 12, which discusses territory rights.
This stipulation means that a Hardees franchisee cannot independently decide to move their restaurant to a new location without first obtaining approval from Hardees. This is a common practice in franchising, allowing the franchisor to maintain brand consistency and ensure that the new location meets specific criteria and standards. Hardees will likely evaluate factors such as market demographics, proximity to other Hardees locations, and the suitability of the new site for a Hardees restaurant.
Furthermore, the FDD outlines specific conditions under which a franchisee may relocate if they lose possession of their original premises through no fault of their own. In such cases, relocation is permitted if Hardees approves the new location, the franchisee constructs and equips the restaurant to current system standards, the restaurant reopens within six months, and the franchisee reimburses Hardees for reasonable expenses related to the new location's acceptance. These conditions provide a framework for relocation while protecting Hardees' interests and brand standards.