What factors are excluded when determining the purchase price of Hardees franchise assets?

According to Hardees's 2025 Franchise Disclosure Document, when Hardees exercises its option to purchase a franchise location's assets, the purchase price calculation specifically excludes certain intangible elements. The purchase price will not include any value attributed to Hardees's trademarks, service marks, or other commercial symbols associated with the restaurant's operation. Furthermore, the calculation omits any consideration for the goodwill or "going concern" value of the franchised Hardees restaurant.

This means that Hardees, when buying back a franchise, is only paying for the tangible assets like equipment, leasehold improvements, and inventory, and not for the brand recognition or established customer base that contributes to the restaurant's profitability. This could result in a lower purchase price than a franchisee might expect if they were selling the business to an independent third party.

For a prospective Hardees franchisee, this is an important consideration when evaluating the potential return on investment. If the franchisee anticipates selling the business back to Hardees at the end of the franchise term, they should be aware that the purchase price will be based solely on the fair market value of the physical assets, excluding any intangible value associated with the Hardees brand or the restaurant's ongoing operations. This highlights the importance of carefully managing and maintaining the physical assets of the franchise to maximize their value in the event of a buyback by Hardees.