Under what conditions does the Hardees Development Term end?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR hereby grants to Developer, subject to the terms, conditions, provisions and limitations of this Agreement, the right to develop Franchised Restaurants in the Development Territory during the Development Term. The Development Term begins on the date this Agreement is signed by HR and
terminates on the first to occur of: (1) the date that the last Franchised Restaurant required by the Development Schedule in attached Appendix B opens for business; or (2) the date that the last Franchised Restaurant was required to be opened pursuant to the Development Schedule. There is no renewal term for this Agreement. Each Franchised Restaurant shall be located in the Development Territory at a specific location accepted by HR.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Development Term, which defines the period during which a developer has the right to develop franchised restaurants in a specific territory, concludes under specific conditions. The Development Term starts when the Development Agreement is signed by Hardees.
The agreement terminates when the first of two conditions occurs: either the date the last franchised restaurant required by the Development Schedule opens for business, or the date the last franchised restaurant was required to be opened according to the Development Schedule. This means the Development Term ends either when all restaurants are successfully opened, or when the deadline for opening all restaurants as per the schedule has passed, regardless of whether all restaurants have actually opened.
It is important to note that the Development Agreement does not have a renewal term. Each franchised restaurant must be located within the Development Territory at a site specifically approved by Hardees. This agreement solely grants the developer the right to develop Hardees restaurants and does not constitute a franchise agreement itself, meaning a separate Franchise Agreement is required for each restaurant.