factual

Can a Hardees Franchised Restaurant be the conversion of an existing quick service restaurant brand?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchised Restaurant may be a newly developed restaurant or the conversion of an existing quick service restaurant brand (at times referred to as a "Conversion Restaurant").

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.

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.

Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–22)

What This Means (2025 FDD)

According to Hardees' 2025 Franchise Disclosure Document, a Hardees Franchised Restaurant can be the conversion of an existing quick service restaurant brand. The FDD states that if approved as a franchisee, you can buy a franchise to develop and operate a Hardee's Restaurant, which may be a newly developed restaurant or the conversion of an existing quick service restaurant brand, referred to as a "Conversion Restaurant".

This option provides flexibility for prospective Hardees franchisees, allowing them to either build a new restaurant from the ground up or convert an existing quick service restaurant location. Converting an existing restaurant may offer certain advantages, such as lower initial investment costs or faster speed to market, compared to new construction. However, it's important to note that the suitability of a particular location for conversion will likely depend on factors such as the existing building's layout, condition, and compliance with Hardees' brand standards.

Furthermore, Hardees offers a 2025 HR Travel Center Development Incentive Program that applies to franchisees who develop three or more Hardee's restaurants or convert an existing restaurant to a Hardee's restaurant. This program may include incentives such as reduced or waived initial franchise fees, as well as reduced royalty and APO fees. Franchisees interested in converting an existing quick service restaurant to a Hardees should inquire about the specific requirements and incentives available under this program.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.