Does the Hardees sublease contain any financing terms?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor any of our agents or affiliates offer direct or indirect financing to you or guarantee any of your notes, leases or obligations. If you are purchasing one or more company-operated Restaurants, we will issue a Sublease for each site leased by us. The Sublease is a standard commercial lease under which you pay rent to us for use of the premises. The Sublease does not contain any financing 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.
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if you are purchasing a company-operated restaurant, Hardees will issue a sublease for each site they lease. The document specifies that the sublease is a standard commercial lease where the franchisee pays rent to Hardees for using the premises. Importantly, the FDD states explicitly that the sublease does not include any financing terms.
This means that franchisees should not expect Hardees to provide any financing related to the subleased property. Franchisees will need to secure their own financing through external sources if they require it to cover the costs associated with the sublease, such as rent and security deposits.
Prospective franchisees should carefully review the form of the sublease agreement, which is attached as an exhibit to the Franchise Disclosure Document, to fully understand their obligations and responsibilities related to the leased premises. Understanding the terms of the sublease is crucial before committing to purchasing a Hardees franchise.