What is the length of the initial franchise term for a Hardees franchise?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 2.A. | 20 years from the date the Franchised Restaurant opens |
| b. Renewal or extension of the | Section 2.B. | You can renew for 10 years or 5 years, at your option. |
| term | ||
| c. Requirements for you to renew or extend | Section 2.B. | Requirements include: give timely notice; sign general release; comply with training requirements; be in good standing; not be in default under any agreement between you and HR and its affiliates; remodel; demonstrate right to remain in possession of the Franchised Location; and pay a renewal fee. You also must sign our then-current form of Franchise Agreement, the terms of which likely will differ from your original Franchise Agreement, including, without limitation, those relating to royalty fees and advertising obligations. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 64–69)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the initial franchise term is 20 years. This 20-year term begins on the date the franchised restaurant opens. This is a fairly standard initial term length in the franchise industry.
At the end of the initial term, a franchisee has the option to renew the franchise agreement for either 10 years or 5 years. However, to renew, the franchisee must meet several requirements. These include providing timely notice of renewal, signing a general release, complying with all training requirements, and being in good standing with Hardees and its affiliates.
Additionally, the franchisee must not be in default under any agreement with Hardees, complete any required remodeling, demonstrate the right to remain in possession of the franchised location, and pay a renewal fee. A significant point to note is that upon renewal, the franchisee will be required to sign Hardees' then-current form of Franchise Agreement. The terms of this new agreement are likely to differ from the original, potentially affecting royalty fees and advertising obligations. This means that while franchisees have the option to renew, they may be subject to new and potentially more demanding terms.