Must a proposed Hardees transferee have adequate financial resources and working capital?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
must possess a good character, business reputation and credit rating; must have an organization whose management culture is compatible with HR's management culture; and must have adequate financial resources and working capital, as determined by HR in its sole discretion, to meet Franchisee's obligations under this Agreement.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, a proposed transferee must have adequate financial resources and working capital. Hardees assesses whether the proposed transferee meets the brand's business standards for franchisees. This includes evaluating if the transferee possesses a good character, business reputation, and credit rating, along with ensuring their management culture aligns with Hardees'.
Hardees retains sole discretion in determining whether a transferee's financial resources and working capital are adequate to meet the franchisee's obligations. Furthermore, if the transfer involves a sale, Hardees will assess whether the sales price is reasonable enough that it won't jeopardize the transferee's ability to manage the restaurant, meet financial obligations, and maintain Hardees' standards.
This requirement ensures that new Hardees franchisees are financially stable and capable of meeting the financial demands of operating a franchise. Prospective transferees should be prepared to provide detailed financial information to Hardees for evaluation. This protects Hardees' brand and reputation by ensuring franchisees can uphold operational and financial commitments.