What are the requirements for a Hardees franchisee to renew or extend the franchise term?
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, a franchisee has the option to renew their franchise agreement for either 10 years or 5 years. To do so, the franchisee must meet several requirements. These include providing timely notice of their intent to renew, signing a general release, and complying with all training requirements set by Hardees.
Additionally, the franchisee must be in good standing with Hardees and not be in default under any agreement with Hardees or its affiliates. This means the franchisee must have met all financial and operational obligations. The franchisee will likely be required to remodel the restaurant to meet current brand standards as a condition of renewal. The franchisee must also demonstrate that they have the right to remain in possession of the franchised location, ensuring they have a valid lease or ownership of the property.
Finally, the franchisee must pay a renewal fee to Hardees. It is important to note that upon renewal, the franchisee will be required to sign Hardees's then-current form of Franchise Agreement. The terms of this new agreement are likely to differ from the original, potentially including changes to royalty fees and advertising obligations. This means that franchisees need to carefully review the new agreement to understand any changes in their obligations and costs.
Prospective franchisees should be aware that the specific terms and conditions for renewal can change over time, and it is crucial to carefully review the then-current franchise agreement and consult with legal and financial advisors before making a decision to renew their Hardees franchise.