What is the renewal fee for a 5-year term Hardees franchise renewal?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
odify certain provisions of the Franchise Agreement as reflected in this Addendum.
AGREEMENT
NOW THEREFORE, in consideration of the covenants and agreements set forth below and other good and valuable consideration, the parties agree as follows:
- 1. In connection with the execution of the Franchise Agreement and the renewal of the Franchise previously granted to Franchisee, Franchisee has agreed to timely satisfy the conditions, if any, listed in attached Appendix 1. Franchisee acknowledges that its
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee must pay a renewal fee to renew their franchise agreement. The renewal fee for a 5-year term is $5,000. For a longer renewal term, specifically one greater than 5 years but not exceeding 10 years, the renewal fee is $10,000. This fee compensates Hardees for granting the renewal franchise agreement.
It is important to note that this fee is fully earned by Hardees upon payment and is non-refundable, regardless of the circumstances. The FDD also states that all references to the "Initial Franchise Fee" shall mean and refer to the Renewal Fee.
To renew the franchise, a franchisee must provide Hardees with written notice of their intent to renew, specifying the length of the renewal term (either 5 or 10 years). This notice must be given no less than 12 months and no more than 24 months before the expiration of the initial term. Franchisees who sublease their location from Hardees must provide notice between 6 and 12 months before the renewal notice is due to the landlord under the master lease. The franchisee must not be in default of the franchise agreement or any other agreements with Hardees to be eligible for renewal.