Who is solely responsible for all obligations, debts, and payments under the lease for a Hardees restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5. Landlord agrees that Tenant, and not HR, shall be solely responsible for all obligations, debts and payments under the Lease and that HR shall have no liability in that regard.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, the tenant, not Hardees Restaurants LLC (HR), is solely responsible for all obligations, debts, and payments under the lease agreement. Hardees will have no liability in that regard. This is part of an agreement between the landlord and the tenant.
This provision is included in the Hardees Lease Addendum, which modifies the lease agreement between the landlord and the tenant. The addendum ensures that certain provisions required by the Franchise Agreement are incorporated into the lease. This arrangement clarifies that the franchisee (tenant) bears the financial responsibility for the lease, which is a standard practice in franchising where the franchisee operates as an independent entity.
This arrangement protects Hardees from being directly liable for the lease obligations of its franchisees. However, Hardees retains certain rights, such as the ability to enter the premises to protect the Hardee's Restaurant System and cure any tenant default, charging the tenant for any costs incurred. This setup allows Hardees to maintain brand standards and operational consistency without assuming direct financial liability for the lease.