When transferring a Hardees franchise, what documents must the franchisee deliver to HR at closing to transfer the assets?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- L. At the Closing, Franchisee shall deliver instruments transferring to HR or its assignee: (1) good and merchantable title to the Assets purchased, free and clear of all liens and encumbrances (other than liens and security interests acceptable to HR or its assignee), with all sales and other transfer taxes paid by the Franchisee; (2) all licenses and permits for the Franchised Restaurant that may be assigned or transferred, with appropriate consents, if required; and (3) the lease or sublease for the Franchised Location, with appropriate consents, if required.
If Franchisee cannot deliver clear title to all of the purchased Assets as indicated in this Section, or if there are other unresolved issues, the Closing shall be accomplished through an escrow.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee must deliver specific documents to HR at closing to transfer the assets. These include instruments transferring good and merchantable title to the assets purchased, free and clear of all liens and encumbrances (unless HR finds them acceptable). The franchisee is also responsible for paying all sales and other transfer taxes.
Additionally, the franchisee must deliver all licenses and permits for the Franchised Restaurant that may be assigned or transferred, with appropriate consents, if required. The lease or sublease for the Franchised Location, with appropriate consents, if required, must also be delivered.
If the franchisee cannot deliver clear title to all of the purchased assets or if there are other unresolved issues, the closing will be accomplished through an escrow account. This ensures that all conditions of the transfer are met before the assets are fully transferred.