Under the Hardees Franchise Agreement, do franchisees receive an exclusive territory?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Par-Baked Biscuits | 1108 |
|---|---|
| 1200 - 1205: Hand-Breaded Chicken | |
| Breading | 1200 |
| Hand-Breaded Chicken | 1201 |
| Buttermilk | |
| Egg Wash Preparation | |
| Hand-Breaded Chicken Tender Boxes (10-, 15- & 20-Piece) | |
| 1302: Desserts | |
| Apple Turnovers | 1302 |
| 1400 - 1405: Mobile Ordering | |
| Mobile Ordering | 1401 |
| Loyalty - MyRewards™ | |
| Mobile Order Training | 1403 |
OLO Dashboard ....................................
ITEM 12
TERRITORY
Development Agreement
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.
Franchise Agreement
You will not receive any exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own and/or operate, or from other channels of distribution or competitive brands that we control. You do not receive any right under the Franchise Agreement to develop additional Franchised Restaurants. Our prior written consent is required before you relocate the Franchised Restaurant.
Source: Item 12 — Territory (FDD pages 57–59)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory under either the Development Agreement or the Franchise Agreement. This means that a Hardees franchisee may face competition from other franchisees, outlets owned and operated by the franchisor, other channels of distribution, or competitive brands controlled by the franchisor. This lack of territorial exclusivity is a significant factor for prospective franchisees to consider.
Hardees does not place geographic restrictions on a franchisee's ability to solicit customers, although Item 13 addresses internet restrictions. However, Hardees retains the right to use and license the Hardee's System and Proprietary Marks, other than those expressly granted to the franchisee. Hardees also reserves the right to market and distribute goods and services identified by the Proprietary Marks through any method or channel of distribution, including the internet, without compensating the franchisee.
Furthermore, Hardees' affiliates, including Affiliated Programs and other portfolio companies owned by private equity funds managed by Roark Capital Management, LLC, may operate and/or franchise businesses that sell similar goods or services. While these affiliated brands maintain separate offices and training facilities, they may solicit and accept orders from customers near a franchisee's business. Hardees states that it does not expect conflicts between its franchisees and its affiliates' franchisees regarding territory, customers, and support, and it has no obligation to resolve any perceived conflicts that might arise. This introduces a potential risk of competition from related but separate entities.