For a Hardees franchise, what are the options for renewal or extension of the franchise term?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
r where the claim arose. For Illinois franchisees, as provided in the Illinois Franchise Disclosure Act, any provision in the Development Agreement that designates jurisdiction in a forum outside of Illinois is void. | | w. Choice of law | Section 22.A | Subject to applicable state law, Tennessee law applies. For Illinois franchisees, as provided in the Illinois Franchise Disclosure Act, Illinois law governs your agreement. |
FRANCHISE AGREEMENT
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 2.A. | 20 years from the date the Franchised Restaurant opens |
| b. Renewal or extension of the | Section 2.B. | You can renew for 10 years or 5 years, at your option. |
| term | ||
| c. Requirements for you to renew or extend | Section 2.B. | Requirements include: give timely notice; sign general release; comply with training requirements; be in good standing; not be in default under any agreement between you and HR and its affiliates; remodel; demonstrate right to remain in possession of the Franchised Location; and pay a renewal fee. You also must sign our then-current form of Franchise Agreement, the terms of which likely will differ from your original Franchise Agreement, including, without limitation, those relating to royalty fees and advertising obligations. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 64–69)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the standard franchise agreement lasts for 20 years from the restaurant's opening date. Franchisees have the option to renew their agreement for either 10 years or 5 years.
To renew the franchise agreement with Hardees, franchisees must meet several requirements. These include providing timely notice of their intent to renew, signing a general release, and complying with all training requirements. Additionally, franchisees must be in good standing with Hardees, not be in default under any agreement with Hardees or its affiliates, and complete any required remodeling of the restaurant. Franchisees must also demonstrate their right to remain in possession of the franchised location and pay a renewal fee.
It is important to note that upon renewal, franchisees will be required to sign Hardees's then-current form of Franchise Agreement. The 2025 FDD states that the terms of the renewed agreement are likely to differ from the original, potentially including changes to royalty fees and advertising obligations. This is a common practice in franchising, as franchise systems evolve over time. Prospective franchisees should carefully consider these potential changes and their financial implications when evaluating the renewal option.
For a Development Agreement with Hardees, there is no option for renewal or extension of the term. The term lasts from the date of signing the Development Agreement until the earlier of either the date the last Franchised Restaurant required by the Development Schedule opens for business, or the date the last Franchised Restaurant is required to be opened under the Development Schedule.