What is the total range of the estimated initial investment for a Hardees restaurant (Item 7), considering the initial franchise fee (Item 5)?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Amount | High Amount | Method of Payment (2) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Fees to HR: | |||||
| Initial Franchise Fee (3) | $25,000 | $25,000 | Lump sum or installments | See Item 5 | HR |
| Opening Training | $32,000 | $72,000 | As incurred | See Item 5 | Vendors, HR |
| Support Team Fee (3) | |||||
| Type of Expenditure | Low Amount | High Amount | Method of Payment (2) | ||
| Total Fees to HR | $57,000 | ||||
| Build-Out Costs: | |||||
| Point of Sale System | $55,000 | $72,000 | Vendors, HR and | ||
| (4) | third parties | ||||
| Soft Costs (5) | $5,000 | $25,000 | As arranged | As incurred | Vendors and third parties |
| Equipment (4) | $350,000 | $540,000 | As arranged | As incurred | Vendors, HR |
| Signage (6) | $15,000 | $55,000 | As arranged | As incurred | Vendors and third parties |
| Total Build-Out | $425,000 | $692,000 | |||
| Costs | |||||
| Preliminary Operating Expenses: | |||||
| Initial Training (7) | $20,000 | $60,000 | As arranged | As incurred | Third parties |
| Pre-Opening Costs (8) | $26,000 | $44,000 | As arranged | As incurred | Vendors, HR |
| Additional Funds - | $160,000 | $250,000 | As arranged | As incurred | Vendors, HR |
| 3 months (9) | |||||
| Total Preliminary | $206,000 | $354,000 | |||
| Operating Expenses | |||||
| TOTAL | $688,000 $1,143,000 | ||||
| ESTIMATED | |||||
| INITIAL | |||||
| INVESTMENT (10) |
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the estimated initial investment to develop a Hardees restaurant at a Travel Center Location or Gas and Convenience Location ranges from $688,000 to $1,143,000. This total includes several cost categories, such as fees to HR, build-out costs, and preliminary operating expenses. The initial franchise fee is $25,000, which is included in the total fees to HR.
The low-end estimates assume the Franchised Location is at a Travel Center or Gas and Convenience Location that doesn't meet the Travel Center Program requirements, including exterior building signs and a 25-foot pole. The high-end estimates assume the Franchised Restaurant is at a Travel Center or Gas and Convenience Location that meets the Travel Center Program requirements, meaning it's within a ½ mile of an interstate or limited access highway and includes a combination of high rise pylon sign, street level onsite pylon sign, monument sign, billboard or other highway sign.
Several factors can influence the total cost, including the size of the restaurant, adherence to Hardees's methods, management skills, financing costs, local economic conditions, and the local market for restaurants. The estimates also assume that the building, site work, and improvements are paid for by the Travel Center Host or owner of the Gas and Convenience Location and do not include an HVAC Unit, electrical switchgear, water heater, grease trap, drive thru window and sign foundations and poles. Prospective franchisees should carefully review these figures with a business advisor before making any decision to purchase the franchise.