Under what conditions will Hardees not authorize the opening of a franchised restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from HR that it has approved the Plans. All construction must be in accordance with Plans approved by HR and must comply in all respects with applicable laws, ordinances and local rules and regulations. The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by HR, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time. HR may furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.
C. Commencement and Completion of Construction
Construction of the Franchised Restaurant shall commence within 6 months after the Property Control Date ("Construction Commencement Date"). Site acceptance will be deemed to have been withdrawn, without notice to Franchisee, if Franchisee fails to commence construction within that time period.
Prior to the Construction Commencement Date, Franchisee shall have: (1) eliminated or otherwise satisfied all of the conditions set forth in this Agreement (2) paid HR the balance, if any, of the Initial Franchise Fees required by this Agreement; (2) if not previously signed, executed this Franchise Agreement; (3) provided HR a copy of the fully-executed lease for the Franchised Location (containing those provisions specified by HR in accordance with Section 3) or, if Franchisee owns the Franchised Location, proof of Franchisee's ownership interest. As used in this Agreement, construction shall have commenced only after Franchisee has obtained all required permits and: (a) with respect to a free-standing Franchised Restaurant, Franchisee has begun the installation of building footings with the intent to maintain continuous construction thereafter; or (b) with respect to a non free-standing Restaurant or a Restaurant being converted from a prior use, Franchisee has begun the installation of sub-floor plumbing with the intent to maintain continuous construction thereafter.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardee's 2025 Franchise Disclosure Document, Hardee's will not authorize the opening of a franchised restaurant if construction has not been performed in substantial compliance with the Plans approved by HR. The franchisee is prohibited from beginning site preparation or construction before receiving written notification from Hardee's that it has approved the Plans. All construction must align with Hardee's approved Plans and comply with all applicable laws, ordinances, and local rules and regulations.
Construction of the Franchised Restaurant must commence within 6 months after the Property Control Date, otherwise, site acceptance will be deemed to have been withdrawn, without notice to Franchisee. Prior to the Construction Commencement Date, Franchisee shall have: (1) eliminated or otherwise satisfied all of the conditions set forth in this Agreement (2) paid HR the balance, if any, of the Initial Franchise Fees required by this Agreement; (2) if not previously signed, executed this Franchise Agreement; (3) provided HR a copy of the fully-executed lease for the Franchised Location (containing those provisions specified by HR in accordance with Section 3) or, if Franchisee owns the Franchised Location, proof of Franchisee's ownership interest.
In practical terms, this means a Hardee's franchisee must adhere strictly to the franchisor's construction guidelines and legal requirements. Failure to do so can result in the delay or denial of the restaurant opening, and potentially the termination of the franchise agreement. A prospective franchisee should carefully review the construction requirements and approval processes outlined in the Franchise Agreement and related documents to ensure they can meet these obligations.