Under what condition is a Hardees franchisee required to designate and retain a Multi-Unit Manager?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee operates restaurants that are franchised by HR or its affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy the requirements of Section 18.G., Franchisee shall designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager shall be under the supervision of the Operating Principal. The Multi-Unit Manager shall meet all of the following qualifications:
(1) The Multi-Unit Manager shall devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by HR or its affiliates) operated by Franchisee in the same 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 Manager shall maintain his primary residence within a reasonable driving distance of the Franchised Restaurant.
(3) The Multi-Unit Manager shall successfully complete the FMTP and any additional training required by HR.
(4) HR shall have approved the Multi-Unit Manager, and not have later withdrawn that approval.
If the Multi-Unit Manager no longer qualifies as such, Franchisee shall designate another qualified person to act as Multi-Unit Manager within 30 days after the date the prior Multi-Unit Manager ceases to be qualified. Franchisee's designee to become the Multi-Unit Manager must successfully complete the FMTP and any additional training required by HR.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee is required to designate and retain a Multi-Unit Manager under specific conditions related to operating restaurants in multiple geographic markets. If a Hardees franchisee operates restaurants franchised by Hardees or its affiliates in multiple geographic markets, they must designate and retain a Multi-Unit Manager for all markets where the Operating Principal does not meet the requirements outlined in Section 18.G of the franchise agreement. This ensures that each market has adequate supervision and management. The Multi-Unit Manager operates under the supervision of the Operating Principal.
The Multi-Unit Manager must meet certain qualifications to ensure they can effectively manage the restaurants. They must devote their full time and best efforts to supervising the operation of the franchised restaurant and other restaurants franchised by Hardees or its affiliates within the same geographic market. They cannot engage in any other business or activity that requires substantial management responsibility. Unless Hardees waives this requirement in writing, the Multi-Unit Manager must maintain their primary residence within a reasonable driving distance of the franchised restaurant.
Furthermore, the Multi-Unit Manager must successfully complete the Franchise Management Training Program (FMTP) and any additional training required by Hardees. Hardees must approve the Multi-Unit Manager and not have withdrawn that approval later. If the Multi-Unit Manager no longer qualifies, the franchisee has 30 days to designate another qualified person to act as the Multi-Unit Manager, who must also complete the FMTP and any additional training.
These requirements ensure that Hardees restaurants are well-managed and maintain consistent standards across different locations and markets. For a prospective franchisee, this means understanding the importance of having qualified management in place, especially when expanding into multiple geographic areas. It also highlights the need to invest in training and development for management personnel to meet Hardees' standards.