What capital expenditures are Hardees franchisees required to make to renovate and modernize the Franchised Restaurant for renewal?

According to Hardees's 2025 Franchise Disclosure Document, franchisees must make capital expenditures to renovate and modernize their franchised restaurant as a condition of renewal. These expenditures ensure the restaurant conforms to the current interior and exterior designs, decor, color schemes, furnishings, equipment, and presentation of Hardees's Proprietary Marks, aligning with the system's image for new restaurants at the time of renewal. This includes structural changes, remodeling, redecoration, and modifications to existing improvements necessary to meet these standards.

Hardees requires these renovations to maintain a consistent brand image and customer experience across all locations. The specific requirements are determined by Hardees and reflect the current standards for new restaurants in the system. Franchisees are responsible for covering the costs associated with these capital improvements, which can vary depending on the extent of the required changes and the condition of the existing restaurant.

This requirement has significant financial implications for franchisees seeking to renew their franchise agreement. Franchisees should carefully assess the potential costs of these renovations and factor them into their long-term financial planning. It is important to communicate with Hardees early in the renewal process to understand the scope of the required renovations and to develop a realistic budget and timeline for completing the work. Franchisees should also be aware that failure to comply with these renovation requirements could result in the denial of their renewal application.