Under what conditions is Hardees under no obligation to review any development proposal?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Because real estate development is an art and not a precise science, Developer agrees that acceptance, or refusal to accept a proposed site by HR, whether or not a site report is completed and/or submitted to HR shall not impose any liability or obligation on HR. The decision to accept or reject a particular site is Developer's, subject to acceptance by HR. Preliminary acceptance of a proposed site by any representative of HR is not conclusive or binding, because his or her recommendation may be rejected by HR.
HR assumes no liability or responsibility for: (1) evaluation of an Authorized Site's soil for hazardous substances; (2) inspection of any structure on the Authorized Site for asbestos or other toxic or hazardous materials; (3) compliance with the Americans with Disabilities Act ("ADA"); or (4) compliance with any other applicable law. It is Developer's sole responsibility to obtain satisfactory evidence and/or assurances that the Authorized Site (and any structures thereon) is free from environmental contamination and in compliance with the requirements of the ADA.
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees has no liability or obligation to a developer whether or not a site report is completed or submitted. The decision to accept or reject a particular site is the developer's, subject to acceptance by Hardees. Preliminary acceptance of a proposed site by any representative of Hardees is not conclusive or binding, because their recommendation may be rejected by Hardees.
Hardees assumes no liability or responsibility for evaluating an authorized site's soil for hazardous substances, inspecting any structure on the authorized site for asbestos or other toxic or hazardous materials, compliance with the Americans with Disabilities Act ("ADA"), or compliance with any other applicable law. It is the developer's sole responsibility to obtain satisfactory evidence and/or assurances that the authorized site (and any structures thereon) is free from environmental contamination and in compliance with the requirements of the ADA.
This means that while Hardees has the right to accept or reject a proposed site, the responsibility for ensuring the site meets legal and environmental standards falls entirely on the developer. A prospective Hardees developer should conduct thorough due diligence on any potential site, including environmental and ADA compliance audits, before submitting it for Hardees's approval. This protects the developer from potential liabilities and ensures the site is suitable for a Hardees restaurant.