What written information must a Hardees developer provide to HR regarding a proposed transfer?

According to Hardees's 2025 Franchise Disclosure Document, a developer seeking to transfer their rights must provide Hardees (referred to as HR in the document) with specific written information. The developer must advise Hardees in writing of the proposed transfer and submit a franchise application for the proposed transferee. Additionally, the developer must submit a copy of all contracts, agreements, proposals, and any other information requested by Hardees relating to the proposed transfer.

This requirement ensures that Hardees has ample opportunity to assess the suitability of the proposed transferee. Hardees evaluates factors such as the transferee's experience in high-quality restaurant operations, their managerial and operational standards, character, business reputation, credit rating, management culture, and financial resources. This comprehensive review helps Hardees maintain the quality and consistency of its brand.

Furthermore, Hardees retains the right of first refusal, allowing them to purchase the developer's interest on the same terms offered by a third party. If Hardees waives this right, they still have the discretion to approve or deny the transfer based on the factors mentioned above. Hardees also requires a nonrefundable transfer fee of $2,500 to cover the review of the transfer application.

These stipulations are typical in franchising, as franchisors need to protect their brand and ensure that new operators meet their standards. A prospective Hardees franchisee should be prepared to provide all necessary documentation and financial information to facilitate the transfer process and understand that Hardees has significant control over who can become a franchisee.