Does Hardees reserve the right to merchandise and distribute goods and services identified by the Proprietary Marks through any method or channel of distribution?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only sell or distribute products identified by some or all of the Proprietary Marks from the Franchised Location; you may not use any other method or channel of distribution. We do not impose any geographic restrictions on your ability to solicit customers; however, see Item 13 for internet restrictions. In addition, you must participate in all online ordering and delivery programs that we may designate from time to time and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions. There are no restrictions on our ability to solicit customers, nor must we compensate you for soliciting or accepting orders. We reserve all rights to use and license the Hardee's System, and the Proprietary Marks other than those that we expressly grant you. We reserve the right to merchandise and distribute goods and services identified by the Proprietary Marks (or different proprietary marks) through any method or channel of distribution, including the internet.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees retains significant rights regarding the distribution of goods and services associated with its brand. Hardees reserves the right to merchandise and distribute goods and services identified by the Proprietary Marks through any method or channel of distribution, including the internet. This means that while franchisees are granted the right to sell and distribute products identified by the Proprietary Marks from their Franchised Location, Hardees maintains the authority to also sell those goods and services through other avenues.
This reservation of rights has several implications for prospective Hardees franchisees. Hardees is not obligated to compensate franchisees for orders they solicit or accept. Hardees can also market and sell within the franchisee's territory through other channels, including online sales, without providing compensation.
This type of arrangement, where the franchisor retains the right to use various channels of distribution, is not uncommon in franchising. However, it is crucial for potential franchisees to understand the extent to which Hardees might utilize these reserved rights, as it could impact their sales and profitability. Franchisees are required to participate in online ordering and delivery programs that Hardees may designate and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions.
Prospective franchisees should carefully consider how Hardees's reserved rights might affect their business and discuss these issues with existing franchisees during their due diligence. Understanding the potential for competition from Hardees's own distribution channels is essential for making an informed investment decision.