Under what condition may Hardees refuse to accept a site for a proposed Hardees Franchised Restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
We may refuse to accept a site for a proposed Franchised Restaurant unless you demonstrate sufficient financial and growth ready capabilities and, in our sole judgment, applying standards consistent with criteria we use to establish Hardee's Restaurants in other comparable market areas, to properly develop, operate and maintain the Franchised Restaurant. Therefore, you also must furnish us with financial statements and other information regarding you and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant as we reasonably may require.
Our acceptance of one or more sites is not a representation or a promise by HR that a Franchised Restaurant at an accepted site will achieve a certain sales volume or a certain level of profitability. Similarly, our acceptance of one or more sites and our refusal to accept other sites is not a representation or a promise that an accepted site will have a higher sales volume or be more profitable than a site which we did not accept. Our acceptance only indicates our willingness to be represented by you at that site.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 44–57)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees may refuse to accept a site for a proposed franchised restaurant if the franchisee does not demonstrate sufficient financial and growth-ready capabilities. This determination is based on Hardees' sole judgment, applying standards consistent with the criteria they use to establish Hardee's Restaurants in other comparable market areas.
To assess these capabilities, Hardees requires franchisees to furnish financial statements and other information regarding themselves and the development and operation of the proposed franchised restaurant. This includes investment and financing plans for the proposed restaurant, as reasonably required by Hardees. This allows Hardees to evaluate the franchisee's ability to properly develop, operate, and maintain the franchised restaurant at the proposed site.
It is important to note that Hardees' acceptance of a site does not guarantee any specific sales volume or level of profitability. The acceptance only indicates Hardees' willingness to be represented by the franchisee at that location. The FDD also states that Hardees has no obligation to review any development proposal if the franchisee or its affiliates are not in full compliance with all agreements with Hardees or its affiliates.