Under what circumstances can the Hardees franchise agreement be amended, changed, or varied?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ADDENDUM to the Hardee's Restaurant Franchise Agreement dated as of, ("Franchise Agreement") between Hardee's Restaurants LLC ("HR") and |
|---|
| ("Franchisee") is entered into simultaneously with the |
| Franchise Agreement. |
| RECITALS |
| A. |
| In order to stimulate the development of new franchised Hardee's Restaurants and the |
| continued expansion of the System at eligible travel center and gas and convenience locations, HR has |
| established the 2025 HR Travel Center Development Incentive Program (the "Travel Center Program"). |
| B. |
| To be eligible for the Travel Center Program, the following requirements must be satisfied: |
| (i) the Hardee's Restaurant must be located at a travel center location or gas and convenience location that |
| is within ½ mile of an interstate or limited access highway and must include a combination of high rise |
| pylon sign, billboard or other highway sign, (ii) the travel center location or gas and convenience location |
| must be opened pursuant to a Development Agreement dated no later than May 24, 2026, (iii) Franchisee |
| must open the Franchise Restaurants from a travel center location or gas and convenience location by the |
| date(s) outlined in the corresponding Development Agreement, (iv) Franchisee may not be in default of its |
| obligations under its existing franchise agreements or related agreements with HR or its affiliates, (v) |
| Franchisee must be approved for growth by HR and its affiliates, (vi) Franchisee must satisfy HR's then |
| current financial and operational requirements for new restaurant development, and (vii) Franchisee and |
| the Hardee's Restaurant(s) otherwise meet the requirements of the Travel Center Program. |
| C. |
| Franchisee and HR are parties to a Development Agreement dated as of, |
| ,. |
| D. |
| Franchisee and the Franchised Restaurant are eligible to participate in the Travel Center |
| Program. |
| E. |
| The Franchised Restaurant opened pursuant to this Franchise Agreement qualifies as a |
| "Conversion Restaurant" as determined by HR. |
| F. |
| Consequently, HR and Franchisee are entering into this Addendum to modify the Franchise |
| Agreement to reflect the Franchisee's participation in the Program incentives. |
| AGREEMENT |
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the franchise agreement can be modified through addenda, particularly when the franchisee participates in specific incentive programs. Two such programs are the 2025 HR Travel Center Development Incentive Program and the 2025 HR Development Incentive Program for Conversion Restaurants.
These programs aim to encourage the development of new franchised Hardees restaurants at eligible travel centers, gas stations, and convenience store locations. If a franchisee meets the requirements for either program, Hardees and the franchisee can enter into an addendum to the franchise agreement. This addendum serves to reflect the franchisee's participation in the program and to implement the associated incentives.
To be eligible for either the Travel Center Program or the Conversion Restaurant Program, the franchisee must meet several conditions. These include opening the Hardees restaurant at a qualified location under a Development Agreement dated no later than May 24, 2026, remaining in good standing with Hardees, receiving approval for growth, and satisfying Hardees's financial and operational requirements for new restaurant development. The restaurant must also meet the specific requirements of the respective program. If these conditions are met and Hardees determines that the restaurant qualifies as a "Conversion Restaurant", an addendum can be created to modify the original franchise agreement.
This process ensures that any changes to the franchise agreement are mutually agreed upon and documented in writing, providing clarity and legal protection for both Hardees and the franchisee. It also allows Hardees to offer targeted incentives to encourage specific types of development within its franchise system.