Can Hardees withhold consent for a Developer transfer if the Developer doesn't propose to transfer the same interest with respect to all agreements in the Development Territory?

According to Hardees' 2025 Franchise Disclosure Document, Hardees has the right to withhold consent for a Developer transfer if the Developer does not propose to transfer the same interest with respect to all agreements with Hardees in the Development Territory. This means Hardees wants to ensure consistency and comprehensive transfer of obligations within a specific area.

This provision is in place because Hardees relies on the Developer's business skill, financial capacity, and experience to develop and operate high-quality foodservice operations within the Development Territory. Hardees aims to maintain a consistent standard and unified approach across all agreements within that territory. By requiring the same interest to be transferred across all agreements, Hardees seeks to avoid fragmented responsibilities or potential conflicts of interest that could arise if different entities controlled different aspects of the Development Territory.

For a prospective Hardees franchisee, this means that if you have multiple agreements with Hardees within a Development Territory, you cannot selectively transfer only some of those agreements. Any transfer must encompass all agreements to ensure Hardees' continued oversight and consistency in the territory's development. This requirement is designed to protect the Hardees brand and maintain operational standards within the designated area.