Under what circumstances is the 10% equity ownership requirement for the Development Principal in Developer waived for a Hardees franchise?

According to Hardees's 2025 Franchise Disclosure Document, the requirement that the Development Principal have at least 10% equity ownership interest in the Developer can be waived under specific circumstances. Generally, the Development Principal needs to maintain at least 10% equity ownership in the Hardees franchise development entity. However, Hardees has the sole discretion to modify or waive this requirement.

Specifically, the 10% equity ownership requirement is waived if the Developer was a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between the Developer and Hardees. This exception recognizes that publicly-held entities have different ownership structures than privately held companies.

For a prospective Hardees developer, this means that if your development entity is already a public company or a subsidiary of one, you don't need to worry about the 10% equity requirement for the Development Principal. However, if your entity is not publicly held, the Development Principal will generally need to maintain that minimum equity stake unless Hardees decides to waive it at their discretion. It's important to discuss this with Hardees during the franchise application process to understand if a waiver might be possible based on your specific circumstances.