For a new Hardees franchise, what operating expenses are included in the estimated initial 3 months of business expenses?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
aid expenses. This range also includes, for a Hardee's Restaurant, $18,000 to $21,000 for the initial inventory of food and paper products. These costs do not include utility deposits, installation of telephones, business licenses or cleaning supplies, which are not substantial.
- (9) These figures are an estimate of your operating expenses for the initial 3 months of business. They include payroll, taxes, insurance, food, paper, supplies, utilities, licenses and permits, bank charges and repair and maintenance expenses. They do not include advertising contributions or royalty fees paid to HR. These figures are estimates, and HR cannot guarantee that you will not incur additional
expenses in connection with starting the business. Your costs will depend on factors including: the size of your Franchised Restaurant; how closely you follow HR's methods and procedures; your management skill, experience and business acumen; financing costs; local economic conditions; the local market for restaurants; the prevailing wage rate; competition; and the sales level reached during the initial period.
(10) You should review these figures carefully with a business advisor before making any decision to purchase the franchise. We do not offer any direct financing for any part of the initial investment.
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 initial operating expenses for the first three months of business include several key categories. These expenses encompass payroll, taxes, insurance, food, paper products, supplies, utilities, licenses and permits, bank charges, and repair and maintenance expenses. The FDD indicates that these figures are estimates, and Hardees cannot guarantee that franchisees will not incur additional expenses.
The total estimated cost for these preliminary operating expenses ranges from $160,000 to $250,000, as listed under 'Additional Funds - 3 months'. This range is part of the broader 'Preliminary Operating Expenses' which totals between $206,000 and $354,000 when including initial training and pre-opening costs. These costs are typically paid to vendors and Hardees as they are incurred.
Several factors can influence these costs, including the size of the franchised restaurant, adherence to Hardees' methods and procedures, the franchisee's management skills, financing costs, local economic conditions, the local restaurant market, prevailing wage rates, competition, and the sales level achieved during the initial period. Prospective franchisees should carefully review these figures with a business advisor to understand the potential financial demands of starting a Hardees franchise.