Under what condition is the Hardees Multi-Unit Manager not required to maintain a primary residence within a reasonable driving distance of the Franchised Restaurant?
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.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, a Multi-Unit Manager is generally required to maintain a primary residence within a reasonable driving distance of the franchised restaurant. However, this requirement can be waived if Hardees provides written consent. This waiver provides Hardees with the discretion to allow a Multi-Unit Manager to live further away from the restaurant under certain circumstances.
For a prospective Hardees franchisee, this means that if they plan to operate restaurants in multiple geographic markets and need to appoint a Multi-Unit Manager, that manager will typically need to live close to the restaurant. However, there might be situations where Hardees is willing to make an exception, such as if the manager has extensive experience or if the restaurants are located relatively close to each other despite being in different markets.
It is important for franchisees to discuss this requirement with Hardees during the franchise application process to understand the specific conditions under which a waiver might be granted. This ensures that the franchisee can plan accordingly and find a qualified Multi-Unit Manager who meets Hardees' requirements or obtain a waiver if necessary.