factual

Does Hardees select the site for my franchised restaurant?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

terms. At the time of the closing of the transaction, you and we will execute, among other things and if appropriate, a Sublease for each Restaurant you purchase, the general form of which is attached as Exhibit P.

ITEM 11

FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING

Except as listed below, we are not required to provide you with any assistance.

HR's Pre-Opening Obligations

Before you open your Franchised Restaurant, we will:

  • 1. Provide you with the following site selection assistance: (a) HR's site selection guidelines and, as you may request, a reasonable amount of consultation with respect to site selection; and (b) onsite evaluation that we may deem advisable as part of our evaluation of your request for site acceptance. (Development Agreement, § 5.B and Franchise Agreement, § 4.B.)

  • 2. Advise you in writing, within 45 days after our receipt of all documents that we require, whether we have accepted a particular site; however, we have no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with us or our affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. (Development Agreement, § 5.D and Franchise Agreement, § 4.D.)

  • 3. Provide you electronic access to, the OPM, which contains information and knowledge that is unique, necessary and material to the Hardee's System. The OPM remains our property. We may revise the contents of the OPM, and you agree to comply with each new or changed section. (Franchise Agreement, § 9.) The Table of Contents of the OPM as of the date of this disclosure document is attached as Exhibit G. As of that date, the OPM contained approximately 224 pages.

  • 4. Provide our FMTP to up to 8 individuals. The details of the FMTP are described later in this Item. (Franchise Agreement, § 11.A.)

  • 5. Provide you with any development training that we may require. (Development Agreement, § 5.G and Franchise Agreement, § 4.A.)

  • 6. Provide you electronic access to, the Development Guide, which contains mandatory specifications and standards relating to construction of Hardee's Restaurants and information relating to your other obligations under the Development Agreement. (Development Agreement, § 6 and Franchise Agreement, § 4.E.)

  • 7. Provide you with consultation and advice with regard to construction or renovation and operation of the Franchised Restaurant, building layout, furnishings, fixtures and equipment plans and specifications, employee selection and training, purchasing and inventory control and those other matters as we deem appropriate at no additional cost. (Franchise Agreement, § 12.A.)

  • 8. Furnish you with prototypical plans and specifications for a Franchised Restaurant, including requirements for dimensions, design, image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront and color scheme. It will be your responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the location of your Franchised Restaurant ("Franchised Location"), and you must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. You must use only registered architects, registered engineers and professional and licensed contractors. We will review your proposed construction plans for the proposed Hardee's Restaurant and notify you within 30 days (or such longer period as we require) after we receive the plans whether the plans are approved. (Franchise Agreement, §4.A.)

  • 9. Provide you with assistance, upon your request, or at our discretion, in opening the Franchised Restaurant and in training your employees as we deem appropriate in light of your needs and the availability of our personnel. We have the right to charge you a fee for the opening training support team, depending on the level of support needed to open the Franchised Restaurant (as determined by us). (Franchise Agreement, § 11.A & .B.)

  • 10. Provide you with a final inspection of the Franchised Restaurant, if we choose to conduct one, and provide you with express written authorization to open the Franchised Restaurant if you have complied with all conditions. (Franchise Agreement, §5.J.)

HR's Obligations During Operation of the Franchise

During the operation of your Franchised Restaurant, we will:

  • 1. Collect, administer and spend for advertising and promotion purposes monies paid by franchised and company-operated Hardee's Restaurants into HNAF. (Franchise Agreement, § 8.B.)
  • 2. Provide you with guidelines for local advertising and promotion. You must submit to us for our approval any local advertising and promotional materials purchased from a source other than HR or its affiliates.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 44–57)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, Hardees provides site selection assistance but does not directly select the site for your franchised restaurant. Hardees offers site selection guidelines and consultation and may conduct an on-site evaluation. However, the franchisee is responsible for submitting a Franchise Site Application and a complete real estate package for a proposed site. Hardees will then advise the franchisee in writing whether they accept the site, typically within 45 days of receiving all required documents.

Hardees's acceptance of a site is contingent on the franchisee demonstrating sufficient financial and growth-ready capabilities. Hardees evaluates the site based on criteria consistent with those used for establishing Hardee's Restaurants in comparable market areas. The franchisee must also provide financial statements and other information related to the development and operation of the proposed restaurant, including investment and financing plans.

It's important to note that Hardees's acceptance of a site does not guarantee any specific sales volume or profitability. The franchisee is responsible for securing the site by entering into a lease or purchasing the real property within 6 to 9 months after site acceptance. Construction must commence within 6 months after securing the property, and the restaurant must open within 18 months after the property control date. Failure to meet these deadlines may result in the withdrawal of site acceptance and potential termination of the Franchise Agreement.

Ultimately, while Hardees provides guidance and approval, the franchisee bears the responsibility for finding and securing a suitable location that meets Hardees's criteria and the franchisee's financial capabilities. This process involves a collaborative effort where the franchisee proposes the site, and Hardees evaluates and either accepts or rejects it based on their standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.