For Hardees franchises in Minnesota, when are initial fees and payments owed by franchisees due?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
The following information applies to franchises and franchisees subject to Minnesota statutes and regulations.
- The following statement is added to Items 5 and 7:
Based upon the franchisor's financial condition, the Minnesota Department of Commerce has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Minnesota franchisees benefit from a specific addendum that addresses the timing of initial fee payments. Due to Hardees' financial condition, the Minnesota Department of Commerce mandates a financial assurance. As a result, all initial fees and payments owed by franchisees in Minnesota are deferred.
This deferral remains in effect until Hardees completes its pre-opening obligations as outlined in the franchise agreement. This means a new Hardees franchisee in Minnesota won't have to pay these initial fees upfront. Instead, the payment is contingent upon Hardees fulfilling its responsibilities in preparing the franchisee to open their restaurant.
The addendum extends this deferral to development fees and initial payments for area developers as well. These payments are also deferred until the first franchise under the development agreement actually opens. This provides a significant financial benefit to new franchisees and area developers in Minnesota, reducing their initial investment risk and aligning payment obligations with the progress of the franchise setup.