Under what circumstances might Hardees waive the Initial Franchise Fee for a new franchisee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
etermine, in our sole discretion, the level of opening training support required for your Franchised Restaurant. We reserve the right, in our sole discretion, to modify the level of assistance provided by the Opening Training Support Team.
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The preceding fees are uniform. HR, in its sole discretion, may offer incentives to a specific franchisee under certain circumstances, which may include circumstances where a franchisee agrees to develop a significant number of Franchised Restaurants, a franchisee agrees to significantly accelerate his historical development patterns, a franchisee agrees to develop Franchised Restaurants in a new territory, a franchisee proposes to develop unique sites or a franchisee desires to rebuild its franchised restaurant at the current site. In those circumstances, among others as determined by us, HR may, among other things, waive some or all of the Initial Franchise Fee, decrease the royalty fee for a period of time (as noted in Item 6) and/or extend the time for a franchisee to comply with its remodel obligations for some or all of its existing Franchised Restaurants. In 2025 we waived the Initial Franchise Fee in certain instances where a new franchisee was taking over operation of a Franchised Restaurant that was closed or otherwise may have closed.
Source: Item 5 — Initial Fees (FDD pages 27–29)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the standard Initial Franchise Fee is $25,000, which may be reduced to $15,000 under a Development Agreement. However, Hardees has the discretion to offer incentives to specific franchisees under certain conditions, potentially waiving some or all of the Initial Franchise Fee.
Hardees may waive the Initial Franchise Fee if a franchisee agrees to develop a significant number of restaurants, accelerates their development plans, develops restaurants in a new territory, proposes unique sites, or rebuilds an existing franchised restaurant at its current location. Additionally, in 2025, Hardees waived the Initial Franchise Fee in some cases where a new franchisee took over a closed or potentially closing franchised restaurant.
Furthermore, under a Development Agreement, Hardees will waive the $15,000 Initial Franchise Fee for any franchised restaurant that opens 6 months prior to its contractual opening date as specified in the Development Agreement. These incentives are not guaranteed and are subject to Hardees's discretion, making it important for prospective franchisees to discuss potential incentives during negotiations.