factual

Within how many days after receiving written notice from Hardees regarding required modernization must a franchisee prepare and complete drawings and plans?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

  • C. Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required: (i) as a condition of renewal, (ii) as a condition of HR issuing its consent to a proposed transfer as defined further in Section 18 below, or (iii) at HR's request (but not more often than every 5 years). Capital expenses necessary for the repair and maintenance of the Franchised Location and modifications required by applicable law or required to abate a hazardous situation are not subject to the time limitations described in the preceding sentence. Within 60 days after receipt of HR's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans, along with a project timeline, for the required modernization. These drawings and plans must be submitted to, and their use approved by, HR prior to the commencement of work. Franchisee shall complete the required modernization within the time reasonably specified by HR in its written notice.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, a franchisee has 60 days after receiving written notice from Hardees regarding required modernization to prepare and complete drawings and plans, along with a project timeline, for the required modernization. These drawings and plans must be submitted to, and their use approved by, Hardees prior to the commencement of work.

This requirement is part of Hardees's stipulations for maintaining brand standards and ensuring that franchised locations reflect the current image of the system. Modernization may be required as a condition of renewal, as a condition of Hardees issuing its consent to a proposed transfer, or at Hardees's request, but not more often than every 5 years. However, capital expenses necessary for the repair and maintenance of the Franchised Location and modifications required by applicable law or required to abate a hazardous situation are not subject to the time limitations described in the preceding sentence.

It is important to note that the franchisee must also complete the required modernization within the time reasonably specified by Hardees in its written notice. This means that in addition to the 60 days for preparing plans, the franchisee will have a separate deadline for completing the actual modernization work. Franchisees should carefully review the written notice from Hardees to understand all the specific requirements and deadlines for any required modernization.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.