Does Hardees have the right to counsel with the franchisee and proposed transferee regarding a Hardees franchise transfer?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR, without any liability to Franchisee or the proposed transferee, has the right, in its sole discretion, to communicate and counsel with Franchisee and the proposed transferee regarding any aspect of the proposed Transfer.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees has the right to communicate and counsel with both the franchisee and the proposed transferee regarding any aspect of the proposed transfer of the franchise. This communication can cover any element of the transfer process. Hardees assumes no liability to the franchisee or the proposed transferee as a result of this communication, regardless of whether Hardees consents to the transfer or withholds consent.
This provision allows Hardees to ensure that both parties involved in the transfer are fully informed and aware of the implications and requirements associated with the transfer. This counseling could involve discussing the transferee's qualifications, the financial aspects of the transfer, or the ongoing obligations under the franchise agreement.
For a prospective Hardees franchisee, this means that Hardees can and may engage in direct communication with them and any potential buyer if they decide to sell their franchise. This provides an opportunity for Hardees to maintain standards and ensure a smooth transition, but also means the franchisee and transferee must be prepared to address any concerns or questions Hardees may have during the transfer process.