conditional

Under what condition is the Hardees franchisee's Operating Principal not required to devote full-time efforts to supervising the Franchised Restaurant?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (3) Unless Franchisee has named, and HR has approved, a Multi-Unit Manager
  • (a) The Operating Principal 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 as the Franchised Restaurant and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, the Operating Principal of a Hardees franchise is generally required to devote full-time efforts to supervising the operation of the Franchised Restaurant and other Hardees restaurants operated by the franchisee in the same geographic market. This individual must also avoid engaging in any other business or activity that demands substantial management responsibility. However, this requirement is waived if Hardees has approved a Multi-Unit Manager for the franchisee.

This condition offers Hardees franchisees some flexibility in managing their business operations. If a franchisee has multiple units in the same area, they can appoint a Multi-Unit Manager to oversee the day-to-day activities of those restaurants, which would then free up the Operating Principal to focus on other business matters or investments. This can be particularly beneficial for franchisees looking to expand their operations or diversify their business interests.

It's important to note that the approval of a Multi-Unit Manager is at Hardees's discretion. The franchisee must formally request and receive approval from Hardees before the Operating Principal can reduce their full-time supervision responsibilities. This ensures that Hardees maintains control over the management and operational standards of its franchised restaurants, even when a Multi-Unit Manager is in place.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.