What are the time limits for applying for and effecting a transfer of Hardees Developer ownership interest in the event of death or permanent incapacity?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
G. In the event of the death or permanent incapacity of any person with an ownership interest in Developer, HR shall not unreasonably withhold its consent to a transfer to any person, persons, partnership or corporation designated by his legal representative, provided, however, that:
(1) The requirements of Section 10.B. and 10.C. shall have been met.
(2) The proposed transfer is applied for in writing within 2 months of the date of death or permanent incapacity by the legal representative of such individual, and is effected within 6 months thereafter.
(3) In the case of permanent incapacity, the legal representative shall have furnished a certification of a physician designated by HR that Developer has been or will be unable to develop or operate any System Restaurants for a period of 6 months or longer.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, in the event of death or permanent incapacity of a person with ownership interest in the Hardees Developer franchise, the legal representative has specific time constraints for transferring the ownership. The legal representative must apply in writing for the transfer within 2 months of the date of death or permanent incapacity.
Furthermore, the transfer must be fully executed within 6 months after the date of application. This means the entire process, from initial application to the completion of the transfer, must occur within a defined timeframe to ensure a smooth transition of ownership.
In the case of permanent incapacity, the legal representative must also provide a certification from a physician designated by Hardees, stating that the Developer has been or will be unable to develop or operate any System Restaurants for at least 6 months. This requirement ensures that the incapacity is properly documented and meets Hardees's criteria for allowing the transfer. These stipulations are subject to meeting the requirements outlined in Section 10.B. and 10.C. of the franchise agreement.