How does the Hardees Development Fee (Item 5) incentivize development in specific locations, considering the site selection assistance provided (Item 11)?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
To be eligible for the 2025 HR Travel Center Development Incentive Program, the following requirements must be satisfied: (i) the Travel Center Location or Gas and Convenience Location must be located within ½ mile of an interstate or limited access highway and must include a combination of high rise pylon sign, billboard or other highway sign (the "Travel Center Program"), (ii) the Travel Center Location or Gas and Convenience Location must be opened pursuant to a Development Agreement dated no later than May 24, 2026, that includes the development of at least three (3) newly-constructed Hardee's Restaurant(s), (iii) franchisee must open the Franchise Restaurants from a Travel Center Location or Gas and Convenience Location by the date(s) outlined in the corresponding Development Agreement, (iv) franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with HR or its affiliates, (v) franchisee must be approved for growth by HR and its affiliates, (vi) franchisee must satisfy HR's then-current financial and operational requirements for new restaurant development, and (vii) franchisee and the Hardee's Restaurant(s) otherwise meet the requirements of the 2025 HR Travel Center Development Incentive Program.
For Franchisees who develop 3 or more Hardee's restaurants or the conversion of an existing restaurant to a Hardee's restaurant as part of the 2025 HR Travel Center Development Incentive Program, we will reduce or waive the initial franchisee as set forth in Item 5 and reduce the royalty fee and APO fee as set forth in Item 6.
If you qualify for the 2025 HR Development Incentive Program, simultaneously with your execution of the qualifying Franchise Agreement, you will sign a 2025 HR Travel Center Development Incentive Program Addendum to the Franchise Agreement (Exhibit K), which memorializes your right to receive the development incentives described above for the applicable Franchised Restaurant(s). If you sign the HR 2025 Development Incentive Program Addendum to Franchise Agreement, you will not be entitled, with respect to the applicable Franchised Restaurant(s) covered by the 2025 HR Travel Center Development Incentive Program, to any other incentives that have been or may be offered by us.
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees offers development incentives to encourage franchisees to develop restaurants in specific locations, particularly Travel Center Locations or Gas and Convenience Locations. These locations must be within ½ mile of an interstate or limited access highway and include specific signage. To qualify for the 2025 HR Travel Center Development Incentive Program, franchisees must sign a Development Agreement by May 24, 2026, that includes the development of at least three newly-constructed Hardee's Restaurants.
Hardees provides site selection assistance, including site selection guidelines and consultation, as well as onsite evaluation. This assistance helps franchisees identify and secure suitable locations that meet Hardees's criteria for success. If a franchisee meets the requirements for the 2025 HR Travel Center Development Incentive Program by developing three or more Hardee's restaurants or converting an existing restaurant, Hardees will reduce or waive the initial franchise fee as outlined in Item 5 and reduce the royalty fee and APO fee as detailed in Item 6.
These incentives are formalized through a 2025 HR Travel Center Development Incentive Program Addendum to the Franchise Agreement, which outlines the franchisee's right to receive the specified development incentives. However, franchisees who sign this addendum will not be entitled to any other incentives offered by Hardees. This targeted approach to development, combined with financial incentives and site selection assistance, aims to strategically expand the Hardees brand in high-traffic areas while supporting franchisee success.