What requirement must Hardees Developer's governing documents include regarding transfers?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is a business entity, Developer shall furnish HR with copies of Developer's governing documents and any other corporate documents, books or records that HR may request. When any of these governing documents are modified or changed, Developer promptly shall provide copies to HR. Developer's governing documents must provide that no Transfer (as defined in Section 10.A.) may be made except in accordance with Section 10.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, if a Hardees Developer is a business entity, its governing documents must state that no transfer can occur unless it complies with the conditions outlined in Section 10.A of the agreement. This ensures that Hardees maintains control over who becomes a franchisee and that all transfers adhere to their standards.
This requirement means that any prospective Hardees franchisee operating as a business entity needs to ensure their organizational documents explicitly incorporate Hardees' transfer restrictions. This could involve specific clauses that reference and adhere to Section 10.A of the franchise agreement.
This provision protects Hardees by ensuring that any change in ownership or control of a franchise adheres to their established criteria, maintaining brand consistency and operational standards across all locations. It also alerts potential buyers or partners of the Developer to these transfer restrictions upfront.