Does Hardees charge an additional fee for the pre-opening consultation and advice they provide to franchisees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, HR has the right to waive any of the foregoing conditions.
6. FEES
A. Initial Franchise Fee
Franchisee agrees to pay HR an Initial Franchise Fee in the amount specified in Appendix A upon the execution of this Agreement. Any Development Fee previously paid by Franchisee to HR with respect to the Franchised Restaurant shall be credited against the Initial Franchise Fee. Franchisee acknowledges and agrees that the Initial Franchise Fee is in consideration of HR initially granting this Franchise, it was fully earned at the time paid, and it is not refundable for any reason whatsoever.
B. Royalty Fee
In addition to all other amounts to be paid by Franchisee to HR, Franchisee shall pay HR a nonrefundable and continuing royalty fee in an amount set forth in attached Appendix B for the right to use the System and the Proprietary Marks at the Franchised Location. If any taxes, fees or assessments are imposed on HR by reason of its acting as franchisor or licensing the Proprietary Marks under this Agreement, Franchisee shall reimburse HR the amount of those taxes, fees or assessments within 10 days after receipt of an invoice from HR.
Gross Sales shall include all revenue from the sale of all services and products (except HR approved promotional items) and all other income of every kind and nature (excluding revenue from the sale of stored value gift cards or gift certificates but including revenue when gift certificates are redeemed or stored value gift cards are debited) related to the Franchised Restaurant, whether for cash or credit and regardless of collection in the case of credit; provided, however, that Gross Sales shall not include any sales taxes or other taxes collected from customers by Franchisee for transmittal to the appropriate taxing authority.
C. Advertising Fees
Franchisee also shall spend and/or contribute for advertising approved by HR or its designee up to 7% of the Gross Sales of the Franchised Restaurant. The exact amount of the advertising fees to be spent and/or contributed by Franchisee, and the allocation of the advertising fees, as of the date of this Agreement, is set forth in Section 8 and attached Appendix C.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Based on the 2025 Hardees Franchise Disclosure Document, it is not explicitly stated whether Hardees charges a separate fee for pre-opening consultation and advice. However, the document does mention several fees that franchisees are required to pay.
The FDD states that franchisees must pay an initial franchise fee, the amount of which is specified in Appendix A of the franchise agreement. This fee is paid upon the execution of the agreement and is considered fully earned by Hardees at the time it is paid. The document also mentions that any development fee previously paid will be credited against this initial franchise fee.
In addition to the initial franchise fee, Hardees franchisees must pay a continuing royalty fee for the right to use the Hardees system and proprietary marks. Franchisees are also required to spend or contribute up to 7% of gross sales on advertising approved by Hardees. While these fees cover various aspects of the franchise operation, there is no specific mention of a fee designated for pre-opening consultation and advice. A prospective franchisee should clarify with Hardees whether the initial franchise fee covers pre-opening consultation or if there are separate charges for these services.