Is the Hardees transfer fee refundable?
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)
Based on the 2025 Hardees Franchise Disclosure Document, the renewal fee is not refundable. Specifically, the document states that the renewal fee is considered fully earned upon payment and is non-refundable for any reason. This policy applies to both the $5,000 fee for a renewal term of 5 years or less and the $10,000 fee for a renewal term greater than 5 years, up to 10 years.
This means that if a Hardees franchisee pays the renewal fee but then decides not to renew the franchise agreement, or if Hardees decides not to renew the agreement for any reason, the franchisee will not receive a refund of the renewal fee. This is a standard practice in franchising, as the fee is intended to compensate Hardees for the administrative costs and efforts associated with processing the renewal.
Prospective Hardees franchisees should be aware of this non-refundable policy and carefully consider their decision to renew their franchise agreement. They should also ensure they have the financial resources to cover the renewal fee without expecting a refund if circumstances change. Understanding this policy is crucial for making informed financial decisions regarding the long-term operation of a Hardees franchise.