What is the low and high range for the cost of equipment for a Hardees franchise, and to whom is payment made?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Amount | High Amount | Method of Payment (2) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Equipment (4) | $350,000 | $540,000 | As arranged | As incurred | Vendors, HR |
- (4) You must purchase certain items of furniture, fixtures and equipment, the point of sale system, and smallwares. You may be able to lease from or finance through a third party a portion of these purchases, but you should expect to make a down-payment of up to 25%. The low end of these figures assumes that certain items such as furniture and seating, trash cans, décor, lighting, condiment and beverage stations, flooring, ceiling and wall finishes and restroom fixtures are common use items already existing in the Travel Center Location or Gas and Convenience Location. The high end of these figures also includes the cost of a catalytic converter for the charbroiler. If required, the cost of the catalytic converter is approximately $1,558.
Source: Item 7 — Estimated Initial Investment (FDD pages 36–39)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the estimated cost for equipment ranges from $350,000 to $540,000. These costs are associated with purchasing essential items such as furniture, fixtures, equipment, point of sale systems, and smallwares necessary to operate a Hardees restaurant. The low end of the estimate assumes that certain items like furniture, seating, trash cans, décor, lighting, condiment and beverage stations, flooring, ceiling and wall finishes, and restroom fixtures are already available at the Travel Center or Gas and Convenience Location. The high end of the estimate includes the cost of a catalytic converter for the charbroiler, which is approximately $1,558 if required.
Payment for equipment is made to vendors and to HR, and is due as arranged and incurred. A prospective franchisee may be able to lease or finance a portion of these purchases through a third party, but should anticipate making a down payment of up to 25%. It is important to note that costs paid to Hardees are non-refundable, while the refundability of costs paid to third parties depends on local practices.
Given the substantial investment required for equipment, Hardees encourages potential franchisees to carefully review these figures with a business advisor before making a final decision. Understanding the specific requirements and costs associated with equipment is crucial for assessing the financial feasibility of a Hardees franchise.