Under what condition is a Hardees Developer required to designate and retain a Multi-Unit Development Manager?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is developing Franchised Restaurants in multiple geographic markets, for all markets in which the Development Principal fails to satisfy the requirements of Section 8.F., Developer shall designate and retain an individual to serve as Multi-Unit Development Manager. The Multi-Unit Development Manager shall be under the supervision of the Development Principal. The Multi-Unit Development Manager shall meet all of the following qualifications:
- (1) The Multi-Unit Development Manager shall devote full time and best efforts to supervising the development of the Franchised Restaurants and other restaurants operated by Developer that are franchised by HR or its affiliates in a geographic market and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
- (2) Unless waived in writing by HR, the Multi-Unit Development Manager shall maintain his primary residence within a reasonable driving distance of the Development Territory.
- (3) If requested by HR, the Multi-Unit Development Manager shall successfully complete HR's development training. In addition, the Multi-Unit Development Manager shall successfully complete the FMTP and any additional training required by HR.
- (4) HR shall have approved the Multi-Unit Development Manager, and not have later withdrawn that approval.
If a Multi-Unit Development Manager no longer qualifies as such, Developer shall designate another qualified person to act as Multi-Unit Development Manager within 30 days after the date the prior Multi-Unit Manager ceases to be qualified. Developer's designee to become Multi-Unit Development Manager must successfully complete the FMTP and any additional development training required by HR.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a Developer is required to designate and retain a Multi-Unit Development Manager under specific circumstances related to geographic market development and the Development Principal's qualifications. If a Developer is expanding Hardees Franchised Restaurants into multiple geographic markets, they must appoint a Multi-Unit Development Manager for any market where the Development Principal does not meet the requirements outlined in Section 8.F of the agreement. This ensures adequate supervision and focus on development activities across all markets.
The Multi-Unit Development Manager must operate under the supervision of the Development Principal and meet certain qualifications. They must commit full-time to supervising the development of Hardees Franchised Restaurants, and cannot engage in other business activities that demand significant management responsibilities. Unless Hardees waives this requirement, the Multi-Unit Development Manager must live within a reasonable driving distance of the Development Territory. They may also be required to complete Hardees's development training and the Franchise Management Training Program (FMTP).
Hardees retains the right to approve the Multi-Unit Development Manager, and can withdraw this approval at a later date. Should a Multi-Unit Development Manager no longer meet the necessary qualifications, the Developer has 30 days to appoint a qualified replacement. This replacement must also complete the FMTP and any additional development training required by Hardees. These stipulations ensure that Hardees maintains control over the quality and standards of its franchise development, even when utilizing multi-unit development managers.