What is the potential net present value of a Hardees franchise, considering the initial investment (Item 7), the ongoing expenses (Item 6), and the potential revenue generated by the restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
The financial performance representation included below shows the average revenue for our 129 Hardee's Travel Center and Gas and Convenience Center Restaurants (as defined below) that were operated by our franchisees and us (as company-operated restaurants) during the entire 53 week time period of January 30, 2024 to January 27, 2025 (the "FY25 Period"). Of the 129 Travel Center and Gas and Convenience Center Restaurants included in this financial performance representation, 1 restaurant is company-operated restaurants, and 128 restaurants are franchised restaurants.
At the end of FY25 we had 1,571 franchised and company-operated restaurants open and operating in the United States. Of the 1,442 restaurants excluded from this financial performance representation: (i) 1,433 restaurants operate from a freestanding location – meaning, the restaurant is located in a single tenant
building, not attached to any other structures, (ii) 2 restaurants operate from a college, university, toll plaza, or airport, and (iii) 7 restaurants did not provide us with complete revenue data for the entire FY25 time period.
What This Means (2025 FDD)
I am unable to calculate the net present value of a Hardees franchise using the provided FDD excerpts. While the 2025 FDD includes information about potential revenue for specific Hardees locations (Travel Center and Gas and Convenience Restaurants) in Item 19, it does not provide comprehensive financial projections or pro forma statements that would allow for a full net present value calculation.
Specifically, Item 19 of the Hardees FDD presents the average revenue for Travel Center and Gas and Convenience Restaurants, but this is only for a subset of Hardees locations. The FDD excerpts also mention initial investment costs in Item 7 and operating expenses, but these are presented as ranges and estimates, not as definitive figures for a specific financial model. Furthermore, the excerpts lack detailed information on ongoing expenses such as royalties, advertising fees, and other recurring costs, which are essential for projecting future cash flows.
To determine the potential net present value, a prospective Hardees franchisee would need to develop a detailed financial model that incorporates realistic revenue projections, initial investment costs, and ongoing operating expenses. This model would require additional information from Hardees, such as detailed financial statements, historical performance data for similar locations, and specific assumptions about market conditions and operating efficiencies. It is recommended that potential franchisees consult with a financial advisor to develop a comprehensive financial model before making an investment decision.