After termination or expiration of the Hardees Development Agreement, what evidence must the Developer furnish to HR, and within what timeframe?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Developer immediately shall pay HR and its affiliates all sums due and owing HR or its affiliates pursuant to this Agreement.
- F. HR shall retain the Development Fee, including any remaining (unused) balance on account with HR.
- G. Developer shall furnish HR, within 30 days after the effective date of termination or expiration, evidence (certified to be true, complete, accurate and correct by an authorized officer of Developer) satisfactory to HR of Developer's compliance with Sections 14.A. through 14.E.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, the Developer must furnish evidence to HR of their compliance with specific obligations. This evidence, certified as true, complete, accurate, and correct by an authorized officer of the Developer, must be satisfactory to HR.
The required evidence must be provided within 30 days after the effective date of the termination or expiration. The evidence must demonstrate the Developer's compliance with sections 14.A through 14.E of the agreement, which cover various aspects of post-termination obligations, such as ceasing development in the territory (with exceptions for committed restaurants), termination of exclusive rights, return of materials, adherence to covenants, and payment of outstanding sums.
This requirement ensures that Hardees maintains control over its brand and system even after a Development Agreement ends. For a prospective Hardees developer, this means being prepared to compile and submit comprehensive documentation within a tight timeframe to demonstrate adherence to all post-termination obligations. Failure to do so could potentially lead to legal repercussions or disputes with the franchisor.