When developing a business plan for a Hardees restaurant, what expenses should a franchisee take into account?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
and all of Franchisee's obligations will remain in full force and effect during the Interim Period as if the Agreement had not expired. Each Interim Period expires at the end of each calendar month unless this Agreement is renewed as provided for this Agreement. The Interim Period does not create any new franchise rights and upon expiration of the final Interim Period; provided Franchisee does not renew the rights licensed in this Agreement as specified in this Agreement, Franchisee will be bound by all post-term obligations as provided in this Agreement.
3. LEASE TERMS
If Franchisee has not previously provided HR with a fully-signed copy of its lease or sublease for the Franchised Location, or proof that Franchisee has purchased the real estate for the Franchised Location, Franchisee shall immediately upon execution of this Agreement provide HR with a copy of the fully-signed lease or sublease, together with the executed Hardee's Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
4. CONSTRUCTION OF THE FRANCHISED RESTAURANT
A. Development Training
Franchisee shall complete, to HR's satisfaction, any development training required by HR. Franchisee shall pay HR, for each person attending development training, a tuition fee as established by HR from time to time. Franchisee also may attend optional development training as offered by HR from time to time, subject to payment of a tuition fee as established by HR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. HR will furnish to Franchisee prototypical plans and specifications for a Hardee's Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, a franchisee needs to account for several expenses when developing a business plan. These include costs associated with development training, where the franchisee pays tuition fees for each person attending, along with travel, living, and other related expenses. The franchisee also assumes all costs related to developing, constructing, and equipping the Hardees restaurant. This involves preparing construction plans that comply with local ordinances, building codes, permit requirements, and lease restrictions, using registered architects, engineers, and licensed contractors.
Further, the franchisee is responsible for obtaining and maintaining all necessary permits and licenses, such as building, utility, sign, health, sanitation, and business permits. They must also construct improvements to the location and decorate the restaurant's exterior and interior according to Hardees' approved plans. Purchasing or leasing and installing specified fixtures, equipment, furnishings, and signs are also the franchisee's responsibility, as is purchasing the initial inventory of approved products and materials.
In summary, a prospective Hardees franchisee should consider expenses related to training, construction, permits, fixtures, equipment, signage, and initial inventory when creating their business plan. These costs can vary significantly based on location, construction requirements, and the specific equipment and furnishings chosen, so thorough research and budgeting are essential.