What is the initial franchise fee for each Hardees restaurant to be developed under the Development Agreement?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
rm, any type of restaurant other than a Hardee's Restaurant.
The restrictions contained in this Section 2 apply only to HR and do not apply to Hardee's Restaurants under development or in operation in the Development Territory as of the date of this Agreement. Nothing shall prohibit HR or its affiliates from operating or licensing a restaurant at any location in or outside the Development Territory, other than a restaurant in the Development Territory that primarily is identified by the name and mark "Hardee's."
3. DEVELOPMENT SCHEDULE
- A. During the Development
Source: Item 23 — Receipts (FDD pages 85–541)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the initial franchise fee for each restaurant to be developed under the Development Agreement is $25,000. This fee is payable when the Franchise Agreement is executed for each authorized site.
However, the FDD also mentions a Development Fee of $10,000 for each restaurant the developer agrees to develop in the Development Territory. This Development Fee is paid when the Development Agreement is signed and is considered fully earned by Hardees upon payment, meaning it is non-refundable. Importantly, $10,000 of this Development Fee will be credited towards the Initial Franchise Fee upon the execution of each individual Franchise Agreement.
In practical terms, this means that while the initial franchise fee is $25,000, a developer who has already paid the $10,000 Development Fee will only need to pay an additional $15,000 at the time of signing the Franchise Agreement for each location. This structure is designed to incentivize and reward developers who commit to a larger development plan within a specific territory.