What is prohibited regarding site preparation or construction for a Hardees restaurant prior to receiving written notification from HR that it has approved the Plans?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from HR that it has approved the Plans. All construction must be in accordance with Plans approved by HR and must comply in all respects with applicable laws, ordinances and local rules and regulations. The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by HR, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time. HR may furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee is prohibited from beginning site preparation or construction for their Hardees restaurant until they have received written notification from HR (presumably Hardees's headquarters) that their construction plans have been approved. This requirement ensures that all Hardees restaurants adhere to the brand's standards and specifications from the outset.
This stipulation is significant for prospective franchisees because it means they cannot commence any physical work on the restaurant location until Hardees has given the green light. Starting construction prematurely could lead to wasted expenses if the plans are later rejected or require modifications. Franchisees need to factor in the time it takes for plan submission, review, and approval into their overall project timeline.
Furthermore, the FDD states that all construction must align with the approved plans and comply with all applicable laws and local regulations. The restaurant cannot open if construction substantially deviates from the approved plans, and failure to rectify any non-compliance within a reasonable timeframe could result in the termination of the franchise agreement. Hardees may also provide guidance during the restaurant's development and conduct periodic inspections to ensure compliance. This underscores the importance of close communication with Hardees and adherence to their guidelines throughout the construction process.