Under what circumstances is a Multi-Unit Manager required for a Hardees franchise?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
idence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by us. The Operating Principal will be required to successfully complete the FMTP and any additional training required by us. If you operate restaurants in multiple markets that are franchised by us or our affiliates, an individual meeting the above qualifications will serve as the Operating Principal in at least one market.
If you operate restaurants that are franchised by us or our affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager will be under the supervision of the Operating Principal. The Multi-Unit Manager must devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by us or our affiliates) operated by you in the same geographic market, successfully complete the FMTP and any additional training required by us, and be approved by us. In addition, the Multi-Unit Manager must maintain his/her primary residence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by us.
The Development Principal must own at least a 10% equity ownership interest in you, or in your general partner if you are a limited partnership, unless modified by us in our sole discretion. (This requirement does not apply if you were a publicly-held entity or a wholly-owned subsidiary of a publiclyheld entity as of the date of the first franchise-related agreement between you and us.) The Development Principal must be a member of the Continuity Group and have full control over the day-to-day development of the Franchised Restaurants.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 62–63)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a Multi-Unit Manager is required under specific circumstances related to the Operating Principal and Development Principal. If a franchisee operates Hardees restaurants in multiple geographic markets, the franchisor requires a designated Operating Principal. This individual must own at least 10% equity in the franchise, be part of the Continuity Group, and manage the day-to-day operations, standards, and financial performance of the restaurants within that geographic market. However, if the Operating Principal fails to meet Hardees's requirements in any of those markets, the franchisee must designate and retain a Multi-Unit Manager for each market where the Operating Principal falls short. The Multi-Unit Manager works under the supervision of the Operating Principal. The Operating Principal must live within a reasonable driving distance of the Hardees restaurant, unless this requirement is waived by Hardees.
Similarly, if a franchisee signs a Development Agreement, they must designate a Development Principal, who also needs to own at least 10% equity. The Development Principal is responsible for supervising the development of franchised restaurants. Unless a Multi-Unit Development Manager is approved, the Development Principal must devote full time and best efforts to supervising the development of the Franchised Restaurants and maintain their primary residence within a reasonable driving distance of the Development Territory, unless waived in writing by Hardees. If the Development Principal fails to meet Hardees's requirements in specific markets, the franchisee must designate and retain a Multi-Unit Development Manager for those markets. The Multi-Unit Development Manager will be under the supervision of the Development Principal.
In both cases, the Multi-Unit Manager must devote their full time and best efforts to supervising the operation or development of the Hardees restaurants in their designated geographic market. They must also successfully complete the FMTP (Franchise Management Training Program) and any additional training required by Hardees, and be approved by Hardees. Furthermore, the Multi-Unit Manager must maintain their primary residence within a reasonable driving distance of the Franchised Restaurant or Development Territory, unless Hardees waives this requirement in writing. These stipulations ensure that Hardees maintains a consistent standard of operation and development across all its franchised locations, even when the primary principals do not meet the required criteria.