What type of lease is the Hardees sublease?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor any of our agents or affiliates offer direct or indirect financing to you or guarantee any of your notes, leases or obligations. If you are purchasing one or more company-operated Restaurants, we will issue a Sublease for each site leased by us. The Sublease is a standard commercial lease under which you pay rent to us for use of the premises. The Sublease does not contain any financing terms. At the time of the closing of the transaction, you and we will execute, among other things and if appropriate, a Sublease for each Restaurant you purchase, the general form of which is attached as Exhibit P.
Source: Item 10 — Financing (FDD pages 43–44)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Document, if a franchisee purchases one or more company-operated restaurants, Hardees will issue a sublease for each site that Hardees itself leases. The FDD specifies that this sublease is a standard commercial lease. Under the sublease agreement, the franchisee pays rent to Hardees for the use of the premises.
It is important to note that the Hardees sublease does not contain any financing terms. The franchisee and Hardees will execute the sublease at the time of the transaction closing, along with other relevant documents. The general form of the sublease is included as an exhibit in the Franchise Disclosure Document.
Prospective Hardees franchisees should carefully review the sublease agreement and understand their obligations regarding rent payments and use of the premises. Because the sublease is a standard commercial lease, franchisees should be familiar with typical commercial lease terms and conditions.