For Hardees franchisees in South Dakota, under what condition will the collection of the Initial Franchise Fee be deferred?

According to Hardees's 2025 Franchise Disclosure Document, franchisees in South Dakota will have their initial franchise fee collection deferred under specific conditions. Hardees will defer the collection of the initial franchise fees until they have fulfilled their pre-opening obligations to the franchisee.

This deferral is contingent upon Hardees completing all necessary pre-opening tasks as outlined in the franchise agreement. Additionally, the franchisee must have opened their Hardees restaurant for business. This means the franchisee won't be required to pay the initial franchise fee until both Hardees has met its obligations and the restaurant is operational.

This addendum modifies the standard franchise agreement for Hardees franchises specifically in South Dakota to protect the franchisee. It ensures that franchisees are not burdened with the initial franchise fee before the franchisor has provided the agreed-upon support and the restaurant is ready to open. This arrangement can be beneficial for franchisees as it reduces their upfront financial burden and aligns the payment of the fee with the commencement of business operations.