Which sections of the Hardees Franchise Agreement and Development Agreement address the transfer of the franchise?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that HR has entered into this Agreement in reliance on Franchisee's (and Franchisee's direct and indirect owners') business skill, financial capacity, personal character, experience and demonstrated or purported ability in developing and operating high quality foodservice operations. Accordingly, neither Franchisee nor any immediate or remote successor to any part of Franchisee's interest in this Agreement, nor any individual, partnership, corporation or other legal entity which directly or indirectly has an interest in Franchisee shall sell, assign, transfer, convey, give away, pledge, mortgage, or otherwise encumber any direct or indirect interest in Franchisee, this Agreement, the Franchise, the Franchised Restaurant, the assets of the Franchised Restaurant, the Franchised Location or any other assets pertaining to Franchisee's operations under this Agreement (collectively "Transfer") without the prior written consent of HR, unless otherwise permitted by this Section.
Except as otherwise provided in this Agreement, any purported Transfer, by operation of law or otherwise, not having the prior written consent of HR shall be null and void and shall constitute a material breach of this Agreement, for which HR may terminate this Agreement without providing Franchisee an opportunity to cure the breach.
- B. Franchisee shall advise HR in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, submit a copy of all contracts and all other agreements or proposals and submit all other information requested by HR relating to the proposed Transfer. If HR does not exercise its right of first refusal pursuant to Section 18.J., the decision as to whether or not to consent to a proposed Transfer shall be made by HR in its sole discretion and shall include numerous factors deemed relevant by HR. These factors may include, but will not be limited to, the following:
Source: Item 9 — Franchisee's Obligations (FDD pages 42–43)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Section 18 of the Franchise Agreement addresses the transfer of the franchise. This section outlines the conditions and restrictions regarding any sale, assignment, or transfer of the franchisee's interest in the agreement, the franchise, the restaurant, its assets, or the location.
The Hardees Franchise Agreement emphasizes that the rights and duties are personal to the franchisee. Hardees enters into the agreement based on the franchisee's business skills, financial capacity, character, experience, and ability to operate a high-quality foodservice operation. Therefore, any transfer of interest requires prior written consent from Hardees. Failure to obtain this consent renders the transfer void and constitutes a breach of the agreement, potentially leading to termination without an opportunity to cure the breach.
To initiate a transfer, a Hardees franchisee must provide written notice to Hardees, submit a franchise application for the proposed transferee, and provide copies of all relevant contracts, agreements, and information requested by Hardees. Hardees has the right of first refusal and the final decision to consent to the transfer is at Hardees's sole discretion, considering factors such as the transferee's experience in similar restaurant operations, managerial capabilities, and overall qualifications.