Under what conditions can Hardees as the Licensor transfer or assign the agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4. Assignment. Neither party may assign or transfer any part of this Agreement without the prior written consent of the other Party except that this Agreement may be assigned without consent: (a) to a person or entity who acquires all or substantially all of the assigning Party's assets, stock or business, and (b) to any affiliate or subsidiary of a Party; in each case, so long as the assignee accepts the obligations hereunder in writing. Any purported assignment of rights or obligations, except as expressly permitted herein, will be null and void. Subject to the foregoing, this Agreement will bind and inure to the benefit of the parties and their respective permitted successors and assigns.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees as the Licensor has specific rights regarding the transfer or assignment of the franchise agreement. Generally, neither the franchisee nor Hardees can assign or transfer any part of the agreement without the prior written consent of the other party.
However, Hardees can assign the agreement without the franchisee's consent under two specific conditions. First, Hardees may assign the agreement to a person or entity who acquires all or substantially all of Hardees' assets, stock, or business. Second, Hardees can assign the agreement to any affiliate or subsidiary of Hardees. In both of these cases, the assignee must accept the obligations of the agreement in writing.
Any attempt to assign rights or obligations under the agreement that does not comply with these express permissions will be considered null and void. Subject to these conditions, the agreement is binding and extends to the benefit of both parties, including their respective permitted successors and assigns. This clause ensures that Hardees retains flexibility in its business operations while protecting the franchisee's interests by requiring any assignee to accept the existing obligations.