If a Hardees franchisee qualifies for the Conversion Cash Incentive, how much is the incentive and when will Hardees pay it?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ADDENDUM to the Hardee's Restaurant Franchise Agreement dated as of, |
|---|
| ("Franchise |
| Agreement") |
| between |
| Hardee's |
| Restaurants |
| LLC |
| ("HR") |
| and |
| ("Franchisee") is entered into simultaneously with the |
| Franchise Agreement. |
| RECITALS |
| E. |
| In order to stimulate the development of new franchised Hardee's Restaurants and the |
| continued expansion of the System at eligible travel center and gas and convenience locations, HR has |
| established the 2025 HR Development Incentive Program for Conversion Restaurants (the "Conversion |
| Restaurant Program"). |
| F. |
| To be eligible for the Conversion Restaurant Program, the following requirements must be |
| satisfied: (i) the travel center location or gas and convenience location must be opened pursuant to a |
| Development Agreement dated no later than May 24, 2026, (ii) Franchisee must open the Franchise |
| Restaurants from a travel center location or gas and convenience location by the date(s) outlined in the |
| corresponding Development Agreement, (iii) Franchisee may not be in default of its obligations under its |
| existing franchise agreements or related agreements with HR or its affiliates, (iv) Franchisee must be |
| approved for growth by HR and its affiliates, (v) Franchisee must satisfy HR's then-current financial and |
| operational requirements for new restaurant development, and (vi) Franchisee and the Hardee's |
| Restaurant(s) otherwise meet the requirements of the Travel Center Program. |
| G. |
| Franchisee and HR are parties to a Development Agreement dated as of, |
| H. |
| Franchisee and the Franchised Restaurant are eligible to participate in the Conversion |
| Restaurant Program. |
| I. |
| The Franchised Restaurant opened pursuant to this Franch |
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee may be eligible for a cash incentive if they open a 'Conversion Restaurant.' If a Hardees restaurant qualifies as a 'Conversion Restaurant' as determined by Hardees Restaurants LLC (HR), and it opens within 12 months of signing the Franchise Agreement, the franchisee will receive a $50,000 cash incentive.
Hardees will pay this $50,000 cash incentive to the franchisee approximately 30 days after the Hardees restaurant opens for business. This incentive is designed to encourage the conversion of existing restaurant locations into Hardees franchises, allowing for quicker market entry and potentially lower startup costs compared to building a new restaurant from the ground up.
It is important to note that this incentive is specifically for 'Conversion Restaurants' and is subject to Hardees's determination of eligibility. Franchisees should confirm with Hardees the specific criteria for a restaurant to qualify as a 'Conversion Restaurant' to ensure they meet the requirements for receiving the $50,000 incentive. Additionally, franchisees should be aware of any other conditions or limitations that may apply to the incentive program, as outlined in the Franchise Agreement and related addenda.