What is the potential profit margin for a Hardees franchisee, 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.
What This Means (2025 FDD)
Based on the 2025 FDD, it is not possible to calculate the potential profit margin for a Hardees franchisee. While Item 19 provides average revenue information for specific Hardee's locations (Travel Center and Gas and Convenience Restaurants), it does not include any data on expenses or costs of goods sold. Without detailed expense information, a profit margin cannot be accurately determined. The average revenue for 129 Hardee's Travel Center and Gas and Convenience Center Restaurants was collected during the 53-week period from January 30, 2024, to January 27, 2025. Of these, 128 were franchised and 1 was company-operated.
Item 6 details various fees that a Hardees franchisee will incur, such as advertising fees (up to 7% of Gross Sales), national advertising fund contributions (currently 4.25% of Gross Sales), regional cooperative advertising fees (minimum of 0.5% of Gross Sales), and potential costs for secret shopper programs and other quality assurance programs. These fees, along with other operating expenses, would need to be subtracted from the revenue to determine profitability. Item 7 mentions costs including payroll, taxes, insurance, food, paper, supplies, utilities, licenses and permits, bank charges and repair and maintenance expenses for the initial 3 months of business.
To assess potential profitability, a prospective Hardees franchisee should ask the franchisor for detailed information on the operating expenses of similar Travel Center and Gas and Convenience Center Restaurants. This should include costs of goods sold, labor costs, rent, utilities, and other operating expenses. Additionally, it would be beneficial to speak with existing franchisees to gather real-world data on their experiences with revenue and expenses. Understanding these factors is crucial for evaluating the financial viability of a Hardees franchise.