Under what circumstances related to property control can a Hardees developer be considered in default?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Franchised Restaurant to be developed during the Development Term, Developer shall first obtain HR's written acceptance of the site.
No later than 9 months after HR's written acceptance of the site, Developer shall deliver to HR a fully-signed lease or sublease for the Authorized Site (defined below) or proof of Developer's purchase of such site.
The effective date of the lease or sublease, or the closing day of the purchase of the real property, shall be the "Property Control Date".
Developer shall open the Franchised Restaurant no later than the Opening Date set forth in Appendix B.
Strict compliance with the Development Schedule is essential to this Agreement.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, a developer can face default related to property control under specific circumstances. The developer must deliver to Hardees a fully-signed lease or sublease for the Authorized Site or proof of the developer's purchase of such site no later than 9 months after Hardees' written acceptance of the site. The effective date of the lease or sublease, or the closing day of the purchase of the real property, will be the "Property Control Date".
Strict compliance with the development schedule is essential to the agreement. Failure to meet these deadlines or requirements related to securing and documenting property control can result in the developer being in default of the agreement. This emphasizes the importance of adhering to the timelines and procedures established by Hardees for site acquisition and documentation.
This stipulation protects Hardees by ensuring developers promptly secure property rights for restaurant locations, allowing for timely construction and opening. For a prospective Hardees developer, this means having a well-organized plan for site selection, lease negotiation or property purchase, and documentation submission within the specified timeframe. Failure to do so could jeopardize the development agreement and the opportunity to open a Hardees franchise.