What fees must a Hardees franchisee pay before HR approves the opening of the franchised restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to the Construction Commencement Date, Franchisee shall have: (1) eliminated or otherwise satisfied all of the conditions set forth in this Agreement (2) paid HR the balance, if any, of the Initial Franchise Fees required by this Agreement; (2) if not previously signed, executed this Franchise Agreement; (3) provided HR a copy of the fully-executed lease for the Franchised Location (containing those provisions specified by HR in accordance with Section 3) or, if Franchisee owns the Franchised Location, proof of Franchisee's ownership interest.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, a franchisee must fulfill certain financial obligations before the restaurant's opening can be approved. Specifically, the franchisee needs to pay the balance of the initial franchise fee. This fee is a one-time payment made to Hardees in exchange for the franchise rights. Any previously paid development fee will be credited towards this initial franchise fee.
Additionally, the franchisee is responsible for all costs associated with developing, constructing, and equipping the restaurant. This includes expenses for construction plans, specifications, and drawings, which must be submitted to Hardees for approval. The franchisee also bears the costs of obtaining necessary permits and licenses, constructing improvements, purchasing or leasing fixtures and equipment, and acquiring the initial inventory.
Furthermore, the franchisee must cover tuition fees for any required or optional development training provided by Hardees, along with all travel, living, and other expenses incurred while attending these training sessions. Meeting these financial obligations and completing the necessary training are prerequisites for Hardees' approval to open the franchised restaurant. Failure to meet these requirements may delay or prevent the restaurant's opening.