Is paying a renewal fee a requirement for renewing 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, paying a renewal fee is indeed a requirement for franchisees who wish to renew their franchise agreement. The standard franchise term for a Hardees restaurant is 20 years from the date the restaurant opens. Franchisees have the option to renew for either 10 years or 5 years.
To successfully renew their franchise, Hardees franchisees must meet several conditions. These include providing timely notice of their intent to renew, signing a general release, and complying with all training requirements set by Hardees. Furthermore, franchisees must be in good standing with Hardees, meaning they are not in default under any agreement with Hardees or its affiliates.
Additional requirements for renewal include completing any required remodeling of the restaurant to meet current brand standards and demonstrating the legal right to remain in possession of the franchised location. Finally, franchisees must pay the renewal fee to Hardees. The FDD also states that upon renewal, franchisees will be required to sign the then-current form of the Franchise Agreement, which may contain terms that differ from the original agreement, potentially impacting royalty fees and advertising obligations.
Prospective franchisees should carefully consider these renewal requirements, particularly the potential for changes in the franchise agreement and the costs associated with remodeling and the renewal fee. It is important to discuss these factors with Hardees and current franchisees to fully understand the financial and operational implications of renewing a Hardees franchise.