factual

What are the 'Software Support Fees' for a Hardees franchise, and to whom are they payable?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

with the then current Franchisor approved equipment.

  • 1.3 "Fiscal Period" or "Period" means a four-week accounting period as defined by CKR.
  • 1.4 "Licensed Products" means collectively the software systems designed by PAR Brink and CrunchTime for use as part of each Franchised Restaurant as further described in attached Exhibit B.

Software Support Agreement 5/25

  • 1.5 "Support Services" means telephonic help desk Level 1 and 2 maintenance services provided by CKR for the Licensed Products and Covered Equipment as described on Exhibit A.
  • 1.6 "Software Support Fees" means that fees payable by Franchisee to CKR for the Support Services.

ARTICLE 2

SUPPORT SERVICES

  • 2.1 Support Services. CKR will provide the Support Services to Franchisee subject to the terms and conditions of this Agreement. CKR, in its sole discretion, may subcontract with third party vendor(s) to provide the Support Services directly to Franchisee. Franchisee may request Support Services by calling CKR's Help Desk at the access number set forth in Exhibit A, as modified from time to time
  • 2.2 Covered Equipment. In order to facilitate the Support Services, Franchisee agrees to operate the Covered Equipment in accordance with the CKR's and the manufacturer's instructions. Franchisee shall enter into an agreement with Par Tech, Inc. ("Par Tech") or Retail Technology Group, Inc. ("RTG") to provide onsite and telephonic maintenance services to the Covered Equipment.

Source: Item 23 — Receipts (FDD pages 85–541)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, franchisees are required to pay 'Software Support Fees' to CKR, Hardees's parent company, for technical assistance related to the PAR Brink and Crunch Time software systems. These fees cover help desk support services for the Licensed Products and Covered Equipment. The fees are paid via ACH payment at the end of the first fiscal period following the agreement date. CKR defines a fiscal period as a four-week accounting period. The exact amounts and frequency of these fees are detailed in Exhibit A of the agreement. CKR retains the right to increase these fees with 60 days' prior written notice to the franchisee.

Specifically, the FDD mentions two components of these fees: L1/L2 Help Desk Support and Hosting Fees. The L1/L2 Help Desk Support costs $118 per franchised restaurant per fiscal period. Additionally, there is a Hosting Fee of $6.50 per fiscal period, plus a CrunchTime hosting fee of $1.50 per fiscal period. Therefore, the total hosting fee amounts to $8 per fiscal period. These fees are essential for maintaining the operational software systems within a Hardees franchise.

In addition to the ongoing Software Support Fees, Hardees franchisees must also participate in mandatory initial training programs for the PAR Brink and Crunch Time software. This initial training incurs a one-time fee of $1,250, which CKR bills to the franchisee upon execution of the agreement. While additional training programs may be available at CKR's discretion, they would incur further fees. It is important for prospective franchisees to carefully review Exhibit A of the agreement to fully understand the current amounts and frequency of the Software Support Fees, as these are subject to change with proper notice from CKR.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.