Under what condition might Hardees require a potential franchisee to sign a Preliminary Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not currently a franchisee, HR also may require you to sign a Preliminary Agreement (the current form is attached as Exhibit E) under which you must agree to keep confidential the information provided by HR to you during Discovery Day. During Discovery Day, you must attend a 2-day meeting at HR's offices and at a Hardee's Restaurant during which you will meet with, and be evaluated by, various HR personnel. In addition, we may require that your 10% Owners (as defined in Item 15) complete, as we deem necessary and to our satisfaction, an operations overview, which lasts approximately 10 business days ("10-Day Operations Overview").
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–22)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, if an individual is not currently a franchisee with Hardees, Hardees may require them to sign a Preliminary Agreement. This agreement mandates that the potential franchisee maintain the confidentiality of information disclosed by Hardees during a Discovery Day.
Discovery Day involves a two-day meeting at Hardees's offices and a Hardees restaurant. During this time, the potential franchisee will meet with and be evaluated by various Hardees personnel. This evaluation process is a critical step in Hardees's franchisee approval process.
In addition to the Preliminary Agreement and Discovery Day, Hardees may also require that individuals who own 10% or more of the potential franchisee entity complete an operations overview lasting approximately 10 business days. This operations overview ensures that key stakeholders in the franchise are well-versed in Hardees's operational procedures and standards.