When is the Hardees development fee of $10,000 per restaurant due to HR?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ce.**
- B. Developer, as requested by HR, shall prepare a development plan for the Development Territory. Among other things, the development plan may identify specific markets or trade areas in the Development Territory in which Developer will develop Franchised Restaurants, the number and type of Franchised Restaurants to be developed and the time periods in which Developer will develop Franchised Restaurants in each market or trade area. If prepared, any failure by Developer to timely comply with the development plan or any material aspect of the development plan shall constitute a material, non-curable breach of this Agreement, permitting HR to terminate this Agreement immediately by giving written notice of terminat
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the development fee of $10,000 for each restaurant that the developer agrees to develop in the Development Territory is due at the time the Development Agreement is signed. This fee is fully earned by Hardees upon payment and is non-refundable.
Upon the execution of each Franchise Agreement for each Hardees restaurant the developer has agreed to develop, $10,000 of the development fee will be credited against the initial franchise fee due to Hardees. This means that while the initial development fee is non-refundable, it essentially acts as a deposit towards the initial franchise fee for each location.
This arrangement is fairly common in multi-unit development franchise agreements. It incentivizes the developer to commit to a development schedule while providing Hardees with upfront capital. The credit towards the franchise fee reduces the overall financial burden on the developer as they open each location, making it easier to expand within the agreed-upon territory and timeline.