Can Hardees terminate the Development Agreement if the developer fails to provide a fully-executed lease for a proposed site by the Property Control Date?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the grounds for termination that may be stated elsewhere in this Agreement, HR may terminate this Agreement, and the rights granted by this Agreement, upon written notice to Developer without an opportunity to cure upon the occurrence of any of the following events:
- (1) Developer fails to provide HR with a fully-executed lease or sublease, or proof of purchase of the real property, for a proposed site by the applicable Property Control Date listed in Appendix B.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees has the right to terminate the Development Agreement with a developer if the developer fails to provide a fully-executed lease or proof of purchase for a proposed site by the Property Control Date. This termination can occur without Hardees providing the developer an opportunity to cure the failure.
The Property Control Date is defined as the effective date of the lease or sublease, or the closing day of the purchase of the real property. The developer is required to deliver to Hardees a fully-signed lease or sublease for the Authorized Site or proof of purchase no later than 9 months after Hardees's written acceptance of the site.
This clause in the Development Agreement emphasizes the importance of adhering to the established timelines for site control. Failing to meet the Property Control Date can have significant consequences, including the termination of the Development Agreement. Prospective Hardees developers should be aware of these strict requirements and ensure they can secure properties within the specified timeframe to avoid potential termination of their agreement.