Is the sublease for each Hardees restaurant the franchisee purchases?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall provide HR with a copy of the fully-executed lease or sublease, including the Hardee's Lease Addendum, (for a term, including renewal terms, for at least the Initial Term of this Agreement), or proof Franchisee has purchased the real property, for the Authorized Site no later than 6 months after the written acceptance of the Authorized Site by HR, but, in any event, prior to the commencement of construction at the Authorized Site.
Neither HR's receipt of the lease or sublease nor any requirement that Franchisee enter into a written modification to the lease or sublease constitutes a warranty or representation by HR of any kind, express or implied, as to the lease or sublease's fairness or suitability or as to Franchisee's ability to comply with its terms, and HR does not assume any liability or responsibility to Franchisee or to any third parties due to its receipt and review of the lease or sublease.
If the Franchised Restaurant is leased or subleased and the lease/sublease is renewed or extended (or a new lease/sublease is executed) during the Initial Term of this Agreement, Franchisee shall exercise good faith efforts to obtain the landlord's consent to inclusion of the lease provisions required by HR pursuant to Section 3 of this Agreement.
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees do not necessarily purchase the sublease for each Hardees restaurant. Instead, the franchisee can either lease or sublease the property. The franchisee has the option to provide Hardees with a copy of the fully-executed lease or sublease, including the Hardee's Lease Addendum, for a term that covers at least the initial term of the agreement. Alternatively, the franchisee can provide proof that they have purchased the real property for the authorized site.
Hardees requires that the franchisee provide the lease, sublease, or proof of property purchase no later than 6 months after the written acceptance of the authorized site by Hardees. This documentation must be provided before construction begins at the authorized site. Hardees's receipt of the lease or sublease does not constitute a warranty or representation by Hardees regarding the fairness or suitability of the lease or the franchisee's ability to comply with its terms.
If the Hardees restaurant is leased or subleased, and the lease/sublease is renewed or extended (or a new lease/sublease is executed) during the initial term of the agreement, the franchisee must make a good faith effort to include the lease provisions required by Hardees. This ensures that Hardees maintains certain controls and standards over the restaurant's location and operation, even if the franchisee does not own the property outright.
In summary, a Hardees franchisee has the option to either lease/sublease the restaurant location or purchase the real property. If leasing or subleasing, specific lease terms and addenda dictated by Hardees must be included, and Hardees retains the right to review and approve the lease or sublease agreement.