Regarding the construction of a Hardees franchised restaurant, does Hardees assume any liability or obligation for the franchised location's design or construction, or for the furnishings, fixtures, and equipment acquired?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the right of HR to approve the Plans and to inspect the construction work at the Franchised Restaurant, HR and its designees shall have no liability or obligation with respect to the Franchised Location, the design or construction of the Franchised Restaurant or the furnishings, fixtures and equipment to be acquired; HR's rights being exercised solely for the purpose of ensuring compliance with the terms and conditions of this Agreement.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees does not assume liability for the design, construction, or equipment acquired for a franchised location. While Hardees does provide prototypical plans and specifications for a Hardee's Restaurant, the franchisee assumes all costs, liabilities, and expenses related to developing, constructing, and equipping the restaurant.
Hardees will review the franchisee's proposed construction plans, specifications, and drawings, and notify the franchisee of approval or disapproval within 30 days. However, this approval does not transfer liability to Hardees. The franchisee is responsible for ensuring that all plans comply with applicable ordinances, building codes, permit requirements, and lease restrictions, and must use registered architects, engineers, and licensed contractors.
The franchisee is also responsible for purchasing or leasing and installing all specified and required fixtures, equipment, furnishings, and interior and exterior signs. Hardees maintains the right to inspect the construction work to ensure compliance with the franchise agreement, but this right does not create any liability for Hardees regarding the location, design, construction, or acquired items. The franchisee must also cooperate fully with Hardees and its designees during construction and/or renovation.