For Hardees franchises, where can I find the specific length of the Renewal Term?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) At the expiration of the Initial Term, Franchisee shall have an option to remain a franchisee at the Franchised Location for a Renewal Term of 10 years or, at Franchisee's option, 5 years. Franchisee must give HR written notice of whether or not it intends to exercise its renewal option and the length of the proposed Renewal Term not less than 12 months, nor more than 24 months, before the expiration of the Initial Term. Notwithstanding the foregoing, if Franchisee subleases the Franchised Location from HR, Franchisee must give HR the notice described in the preceding sentence not less than 6 months, nor more than 12 months, before notice of renewal is required to be provided to the landlord under the master lease. Failure by Franchisee to timely provide HR the required notice constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
- (2) If Franchisee desires to continue as a franchisee for the Renewal Term, Franchisee must comply with all of the following conditions prior to and at the end of the Initial Term:
- (a) Franchisee shall not be in default under this Agreement or any other agreements between Franchisee and HR or its affiliates; Franchisee shall not be in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant; Franchisee shall not be in default beyond the applicable cure period with any vendor or supplier to the Franchised Restaurant; and, for the 12 months before the date of Franchisee's notice and the 12 months before the expiration of the Initial Term, Franchisee shall not have been in default beyond the applicable cure period under this Agreement or any other agreements between Franchisee and HR or its affiliates.
- (b) Franchisee shall make the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, decor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Hardee's Restaurants at the time Franchisee provides HR the renewal notice, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the length of the renewal term can be found in Item 22, specifically in section B, which discusses the renewal term. At the expiration of the initial term, a Hardees franchisee has the option to renew for either 10 years or 5 years. The franchisee must provide written notice to HR (Hardee's Restaurants LLC) of their intent to renew, indicating the desired length of the renewal term, no less than 12 months and no more than 24 months before the initial term expires. However, if the franchisee subleases the location from HR, the notice period is between 6 and 12 months before the renewal notice is due to the landlord under the master lease. Failure to provide timely notice constitutes a waiver of the renewal option.
To continue as a franchisee for the renewal term, the franchisee must not be in default under the franchise agreement or any other agreements with HR or its affiliates. This includes being current with real estate leases, equipment leases, financing instruments, and payments to vendors and suppliers. Additionally, for the 12 months before the renewal notice and the 12 months before the initial term's expiration, the franchisee must not have been in default beyond any applicable cure period under any agreements with HR or its affiliates.
The franchisee is also required to make necessary capital expenditures to renovate and modernize the restaurant to meet the current image standards for new Hardee's restaurants at the time of the renewal notice. This includes conforming to interior and exterior designs, decor, color schemes, furnishings, equipment, and presentation of proprietary marks. The renewal process also involves executing a new franchise agreement, which may differ from the original, and paying a renewal fee of $5,000 for a 5-year term or $10,000 for a 10-year term.