During the term of the Hardees agreement, are both the Franchisee and the Operating Principal required to devote their full time to the development, management, and operation of the Franchised Restaurant?

According to Hardees' 2025 Franchise Disclosure Document, both the franchisee and the Operating Principal are required to devote their full time and best efforts to the development, management, and operation of the franchised restaurant during the term of the agreement. This requirement ensures that the Hardees restaurant receives the necessary attention and commitment to maintain its standards and operational efficiency.

For a prospective Hardees franchisee, this means that they, or their designated Operating Principal, must be fully dedicated to the Hardees business. The Operating Principal must have at least a 10% equity ownership interest in the franchisee, unless modified by Hardees Restaurants (HR), and must have full control over the day-to-day activities, standards, and financial performance of the franchised restaurant and other Hardees restaurants operated by the franchisee in the same geographic market.

Unless a Multi-Unit Manager is approved by Hardees, the Operating Principal must devote full-time efforts to supervising the operation of the Hardees restaurant and cannot engage in other business activities that require substantial management responsibility. Additionally, the Operating Principal must live within a reasonable driving distance of the Hardees restaurant, unless waived in writing by Hardees. This full-time commitment is a standard practice in the franchise industry to ensure consistent quality and service, but it also represents a significant time and effort investment for the franchisee and Operating Principal.