For Hardees franchisees in Minnesota, what is deferred until the franchisor completes its pre-opening obligations under the franchise agreement?

According to Hardees's 2025 Franchise Disclosure Document, specifically the addendum for Minnesota franchisees, all initial fees and payments owed by franchisees are deferred until Hardees completes its pre-opening obligations under the franchise agreement. This requirement is due to the Minnesota Department of Commerce mandating a financial assurance based on Hardees's financial condition. This deferral also applies to all development fees and initial payments by area developers, which are deferred until the first franchise under the development agreement opens.

For a prospective Hardees franchisee in Minnesota, this means they will not have to pay any initial fees or development fees until Hardees has fulfilled its obligations to help them get their restaurant ready to open. This lessens the financial burden on the franchisee during the initial stages of setting up the franchise.

This deferral provides a significant benefit to Minnesota franchisees, as it reduces their upfront financial risk. It ensures that Hardees is committed to providing the necessary support and resources before the franchisee invests their capital. This arrangement is not standard across all franchises and is a result of specific requirements by the Minnesota Department of Commerce to protect franchisees, given Hardees's financial condition.