Is there a separate Development Agreement included as an exhibit in the Hardees Franchise Disclosure Document?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document issued on May 24, 2025. This disclosure document included the following exhibits: A. List of State Administrators; B. Agents for Service of Process; C. Development Agreement; D. Franchise Agreement; E. Preliminary Agreement; F-1. Software Support Agreement for PAR Brink and CrunchTime; F-2. OLO Authorized Operator Agreement; G. Operation Procedures Manual Table of Contents; H. List of Franchisees That Closed/Transferred Franchised Restaurants in Last Fiscal Year; I. List of Franchisees and Franchised Locations; J. Addenda Required by Certain States; K. Financial Statements; L. Development Incentive Program Addenda to Franchise Agreement; M. Renewal Addendum; N. Confidentiality Agreement; and O. State Effective Dates Page.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Yes, according to the 2025 Hardees Franchise Disclosure Document, a Development Agreement is included as an exhibit. Specifically, Exhibit C to the FDD is the Development Agreement. This agreement outlines the obligations and responsibilities of both Hardees and the franchisee regarding the development of multiple Hardees restaurants within a specific territory and timeframe.
For a prospective Hardees franchisee, the inclusion of a Development Agreement as an exhibit indicates that Hardees offers opportunities for multi-unit development. This agreement would detail the development schedule, specific locations or territories granted, and any development incentives offered by Hardees. It also specifies the conditions under which Hardees may terminate the agreement if the franchisee fails to meet the development schedule.
It is important for potential franchisees to carefully review the Development Agreement to understand their obligations for opening multiple locations, including the timeline, financial commitments, and performance standards required by Hardees. Understanding the terms of the Development Agreement is crucial for franchisees planning to expand their Hardees business through multi-unit development.