Hardee's Franchise Costs, Fees & FDD

Year Business Began: 1960

Franchising Since: 1961

Headquarters: Franklin, Tennessee

Estimated Number of Units: 2,040

Franchise Description: Hardee's Restaurants LLC, (HR) is the franchisor. Hardee’s restaurants are quick service restaurants offering a limited menu of breakfast, lunch and dinner products. The restaurants feature charbroiled 100% Black Angus Thickburger sandwiches, Hand-Breaded Chicken Tenders, Made from Scratch Biscuits and other related quick serve menu items.
Training Overview: The franchisor may require owners owning 10% or more of the franchise to attend a 10-day operations overview before it will commit to enter into any other agreement with them. The franchisor currently provides the FMTP (training program) to franchisees, their operating principal (if not previously trained), their general manager and six other employees whom they have hired as shift leaders. The minimum length of the FMTP is eight consecutive weeks; however, depending on the prior experience of the trainee, the FMTP could be shorter or longer. In addition, the general manager and two shift leaders must attend an additional two weeks of shift control training. In addition, if franchisees do not currently operate a franchised Hardee’s restaurant or if they have not opened a new franchised Hardee’s Restaurant in the last two years, the operating principal must attend another franchisee’s (or a company) new restaurant opening no more than 12 months before their franchised restaurant opens. For their first two franchised restaurants, franchisees will receive the assistance of the franchisor’s All-Star Team in the pre-opening and opening of those two franchised restaurants. The franchisor has the right to require that franchisees, their owners, their operating principal, their general manager and any other employees hired by franchisees to fill certain designated positions take and successfully complete additional training programs. Franchisees must conduct those initial and continuing training programs for their employees as the franchisor periodically requires. The franchisor may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or training sessions on any matters related to the system. In addition, the franchisor also provides franchisees with access to its learning management system called Star University (StarU).

Territory Granted: Franchisees will not receive any exclusive territory under the Franchise Agreement. Franchisees may face competition from other franchisees, from outlets owned and/or operated by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor.

Obligations and Restrictions: Franchisees are not obligated to participate personally in the direct operation of the franchised restaurant. However, franchisees must designate, and the franchisor must approve, a qualified individual to serve as the operating principal of the franchised restaurant. The operating principal must own at least a 10% equity ownership interest in the franchise, or in the general partner if the franchisee is a limited partnership, unless modified by the franchisor in its sole discretion, and be a person acceptable to both the franchisor and the franchisee. (This requirement does not apply if franchisees were a publicly held entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between the franchisee and the franchisor.) Franchisees must use the franchised restaurant solely for the operation of the Hardee’s Restaurant or, if applicable, the dual concept restaurant, and must maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the franchised restaurant as we specify in the manual or otherwise in writing. Franchisees must operate the franchised restaurant in strict conformity with the methods, standards and specifications as the franchisor prescribes in the manual or otherwise in writing.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date the franchised restaurant opens. Franchisees can renew for 10 or five years at their option, if requirements are met.

Financial Assistance: Neither the franchisor nor any of its agents or affiliates offer direct or indirect financing to franchisees, or guarantee any of their notes, leases or obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Opening Training Support Team Fee	$32,000	$72,000
Real Property	Variable
Building	$525,000	$735,395
Site Improvements	$100,000	$550,000
Soft Costs	$50,000	$215,000
Equipment	$350,000	$540,000
Signage	$50,000	$95,000
Point of Sale System	$55,000	$72,000
Initial Training	$20,000	$60,000
Pre-Opening Costs	$8,000	$23,000
Additional Funds - 3 months	$160,000	$250,000
ESTIMATED TOTAL (does not include real estate costs)	$1,375,000	$2,637,395

Other Fees

Type of Fee	Amount
Royalty	4% of gross sales.
Taxes	Franchisees must reimburse the franchisor for any taxes, fees or assessments imposed on the franchisor for acting as franchisor or licensing the proprietary marks.
Hardee's Advertising	An advertising and promotional obligation (APO) in an amount set forth in the Franchise Agreement. The APO will be up to 7% of Hardee's gross sales. Currently, the APO is 5.5% of Hardee's gross sales.
Hardee's National Advertising Fund (HNAF)	Currently 4.25% of Hardee's gross sales.
Hardee's Regional Cooperative (Regional Co-op)	If the franchised restaurant is in an area covered by a regional co-op, currently, minimum of 0.5% of Hardee’s gross sales; however, the regional co-op can vote to increase each member’s contribution.
Hardee's Local Store Marketing (LSM)	Difference between the franchisee’s APO and the amount the franchisee contributes to HNAF and a regional co-op.
Interest	Interest on the amount owed from the date due until paid.
Secret Shopper, and other Quality Assurance (QA) Programs	If implemented, all costs associated with the secret shopper programs or other QA programs as the franchisor may require.
Non-Cash Payment Systems	All costs associated with non-cash payment systems.
Other Training	Fees based upon, but not limited to, materials, vendor charges and facility costs and likely to range from $300 to $1,000.
Other Training Materials	Varies.
Financial Audit and Inspection Costs	Deficiency in royalty fees and advertising contributions, plus interest.
Star University Access Fee	Currently, $14 per fiscal period (currently a 4-week accounting period).
Food and Safety Training Program	Varies.
Transfer	$2,500 per restaurant transferred.
Indemnification	The losses and expenses incurred by the franchisor and its parents and affiliates.
New Product and Supplier Testing	Reasonable cost of inspection and actual cost of testing; $1,500 fee for inspection must be paid as a deposit.
Supply Chain Fee	The franchisor reserves the right to, directly or through its vendor and distribution partners, assess a per case fee on certain products or services franchisees purchase from approved suppliers.
Software Support Fee (PAR Brink and CrunchTime)	Currently, $118 per franchised restaurant per fiscal period (4-week accounting period) (for L/1 and L/2 Help Desk Support for PAR Brink & CrunchTime); in addition, $825 per franchised restaurant bi-annually (every 26-week accounting period) for back office support fee payable to CrunchTime. Additional costs for optional programs apply.
PAR Brink and CrunchTime Training Fee	Currently, one-time fee of $1,250 per franchisee.
Digital Tech Fee	Currently, $160 per fiscal period (4 week accounting period).
Software and Other Technology/POS Updates	Actual cost of updates.
Costs and Attorneys’ Fees	The franchisor’s costs and expenses.
Renewal Fee	$5,000 for a 5-year renewal term (or less) or $10,000 for a renewal term greater than 5 years, but no more than 10 years.
Liquidated Damages	As calculated (see FDD).
Collection Costs and Expenses	The franchisor’s costs and expenses.
Relocation	The franchisor’s reasonable expenses.
Reimbursement of Insurance Costs	Cost of obtaining coverage.
Web Site Fee	Actual cost of developing, reviewing and/or hosting the web site.
Lease Admin Fee (if applicable)	Currently, $2,500 per year.
Reimbursement of Fees Under Lease or Sublease (if applicable)	Actual amount incurred.
Rent for a Former Corporate Restaurant (if applicable)	Varies.

The above information has been compiled from the FDD of Hardee's. Year of FDD: 2025.
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