Under what condition is a Hardees franchisee prohibited from opening the Franchised Restaurant for business?
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)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee is prohibited from opening their restaurant if the construction has not been performed in substantial compliance with the Plans approved by HR. HR refers to Hardee's Restaurants LLC. If the non-compliance is not resolved within a commercially reasonable amount of time, the Franchise Agreement may be terminated. This means that Hardees has the right to ensure the restaurant meets their standards before opening.
Prior to the start of construction, the franchisee must receive written notification from Hardees that the Plans have been approved. All construction must be in accordance with the approved Plans and must comply with all applicable laws, ordinances, and local rules and regulations. Hardees may provide guidance to the franchisee during the development of the Franchised Restaurant and may periodically inspect the premises during its development.
This condition protects Hardees's brand standards and ensures uniformity across all franchise locations. For a prospective franchisee, this means adhering strictly to the approved construction plans and rectifying any deviations promptly to avoid delays in opening and potential termination of the franchise agreement. It is important to maintain open communication with Hardees during the construction phase and address any concerns or required modifications promptly.