Under the Hardees Development Agreement, am I guaranteed an exclusive territory?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
There are no restrictions on the areas in which you may advertise or solicit customers for your Franchised Restaurants; however, see Item 13 for internet restrictions. We reserve all rights to use and license the Hardee's System, and the Proprietary Marks other than those that we expressly grant you. There are no restrictions on the areas in which we may advertise or solicit customers, nor must we compensate you for soliciting or accepting orders from inside the Development Territory. The rights we reserve include the right to use any other channel of distribution, including the internet, to make sales in the Development Territory using the Proprietary Marks or different proprietary marks.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, under the Development Agreement, franchisees will not receive an exclusive territory. This means that a Hardees franchisee may face competition from other franchisees, outlets owned by Hardees, other distribution channels, or competitive brands controlled by Hardees.
This lack of an exclusive territory has significant implications for prospective Hardees developers. It means that Hardees can establish new franchises or operate company-owned stores in the same area as an existing franchisee. This could lead to direct competition for customers and potentially impact the revenue and profitability of individual Hardees locations. Franchisees need to carefully consider the potential for competition when evaluating the financial viability of a Hardees franchise.
Hardees does not restrict where franchisees may advertise or solicit customers, though Item 13 addresses internet restrictions. Hardees retains all rights to the Hardee's System and Proprietary Marks, except those expressly granted to the franchisee. Hardees is also not restricted in its ability to solicit customers, nor is it obligated to compensate franchisees for orders solicited or accepted from within the Development Territory. Hardees reserves the right to use any distribution channel, including the internet, to make sales in the Development Territory using the Proprietary Marks or different proprietary marks.