factual

Under what conditions can a Hardees licensee add new franchised restaurants to the agreement?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. Pursuant to certain franchise or license agreements ("Franchise Agreement(s)") between Franchisee and CKR's subsidiary, Hardee's Restaurants LLC ("Franchisor"), Franchisee is the operator of the franchised Hardee's restaurants located at the addresses listed in attached Exhibit A ("Franchised Restaurants"). Franchisee may add new Franchised Restaurants to this Agreement, with CKR's consent, by amending Exhibit A.

Source: Item 23 — Receipts (FDD pages 85–541)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, a franchisee can add new franchised restaurants to their agreement with CKR, Hardees's parent company, provided they obtain CKR's consent. This is achieved through an amendment to Exhibit A of their Franchise Agreement, which lists the addresses of the franchised Hardees restaurants operated by the franchisee.

This conditionality means that while a franchisee may desire to expand their operations by opening additional Hardees locations, the ultimate decision rests with CKR. CKR's consent likely depends on various factors, such as the franchisee's performance, their compliance with the franchise agreement, the suitability of the proposed location, and CKR's overall strategic objectives for the brand.

For a prospective Hardees franchisee, this highlights the importance of maintaining a good relationship with the franchisor and consistently meeting performance standards. It also underscores the need to thoroughly research and present viable locations for new restaurants to increase the likelihood of obtaining CKR's approval for expansion. The franchisee should proactively communicate their growth plans and demonstrate their capacity to successfully manage additional locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.