Must a proposed transferee meet Hardees' managerial, operational, experience, quality, character and business standards?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The proposed transferee (and if the proposed transferee is not a natural person, all persons that have a direct or indirect interest in the transferee as HR may require) must demonstrate to HR's satisfaction that it has extensive experience in high quality restaurant operations of a character and complexity similar to the restaurants franchised by HR or its affiliates; must meet the managerial, operational, experience, quality, character and business standards for a developer promulgated by HR from time to time; 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 Developer's development obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if a developer seeks to transfer their rights, the proposed transferee must meet certain standards. The transferee needs to demonstrate extensive experience in high-quality restaurant operations similar to those franchised by Hardees. They must also meet Hardees' managerial, operational, experience, quality, character, and business standards for a developer, as determined by Hardees.
In addition, the proposed transferee must possess a good character, business reputation, and credit rating. Their organization's management culture must align with Hardees' management culture. Furthermore, the transferee must have adequate financial resources and working capital to meet the developer's obligations under the agreement, as determined solely by Hardees.
Hardees retains the right to withhold consent to the transfer if these conditions are not met. This ensures that any new franchisee maintains the brand's standards and is capable of fulfilling the obligations of the franchise agreement. Hardees also reserves the right to communicate and counsel with both the developer and the proposed transferee regarding any aspect of the proposed transfer, without incurring any liability.