Does signing the Preliminary Agreement obligate Hardees to offer a franchise to the applicant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12. Franchise Offer. By signing this Preliminary Agreement, HR is not obligated to offer Applicant a franchise and Applicant is not obligated to accept any franchise offer. No franchise offer by HR will come into existence except by a written document executed by an officer of HR which is specifically identified as a Letter of Intent, a License Agreement, a Purchase Agreement, a Development Agreement, or a Franchise Agreement. This Agreement is not an offer of a franchise or a commitment or promise by HR to offer Applicant a franchise, and HR's decision to make any franchise offer rests in HR's sole discretion.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, signing the Preliminary Agreement does not obligate Hardees to offer a franchise, nor does it obligate the applicant to accept a franchise offer. The document states that a franchise offer from Hardees will only be valid if it is a written document executed by an officer of Hardees, specifically identified as a Letter of Intent, a License Agreement, a Purchase Agreement, a Development Agreement, or a Franchise Agreement.
This means that the Preliminary Agreement is simply an initial step in the process and does not guarantee that a franchise will be granted. Hardees retains the sole discretion to decide whether or not to make a franchise offer. This protects Hardees from being forced to offer a franchise to someone they deem unsuitable, even after the applicant has signed the Preliminary Agreement.
For a prospective franchisee, this underscores the importance of due diligence and understanding that the initial agreement is non-binding regarding the actual franchise award. The applicant should focus on fulfilling all requirements and demonstrating their suitability as a franchisee during the evaluation process to increase their chances of receiving a formal franchise offer from Hardees.