Under what condition is financing for the construction, renovation, and/or operation of a Hardees Franchised Restaurant prohibited?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from HR that it has approved the Plans. All construction must be in accordance with Plans approved by HR and must comply in all respects with applicable laws, ordinances and local rules and regulations. The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by HR, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time. HR may furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Based on the 2025 Hardees Franchise Disclosure Document, a franchisee is prohibited from beginning site preparation or construction before receiving written notification from Hardees that the Plans have been approved. This requirement ensures that all construction aligns with Hardees' standards and complies with applicable laws and regulations.
If construction has not been performed in substantial compliance with the approved Plans, the Hardees restaurant cannot open. Furthermore, the Franchise Agreement may be terminated if the non-compliance is not resolved within a commercially reasonable timeframe. Hardees may offer guidance during the development phase and conduct periodic inspections to ensure compliance.
This condition is in place to maintain the uniformity and quality of Hardees restaurants, which is crucial for brand consistency and customer satisfaction. By requiring prior approval and compliance with construction plans, Hardees aims to protect its brand image and ensure that each franchise meets its operational and aesthetic standards. For a prospective franchisee, this means that securing plan approval from Hardees is a critical first step before investing in site preparation and construction.