Under what condition will Hardees waive the remaining $15,000 of the initial franchise fee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
t Agreement dated no later than May 24, 2026, that includes the development of at least three (3) newly-constructed Hardee's Restaurant(s), (iii) Franchisee must open the Franchise Restaurants from a travel center location or gas and convenience location by the date(s) outlined in the corresponding Development Agreement, (iv) Franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with HR or its affiliates, (v) Franchisee must be approved for growth by HR and its affiliates, (vi) Franchisee must satisfy HR's then-current financial and operational requirements for new restaurant development, and (vii) Franchisee and the Hardee's Restaurant(s) otherwise meet the requirements of the Travel Center Program.
- C. Franchisee and HR are parties to a Development Agreement dated as of _________,_____, pursuant to which Franchisee agreed to open at least three (3) and up to nine (9) newly-constructed Hardee's Restaurant(s).
- D. Franchisee and the Franchised Restaurant are eligible to participate in the Travel Center Program.
- E. Consequently, HR and Franchisee are entering into this Addendum to modify the Franchise Agreement to reflect the Franchisee's participation in the Program incentives.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth below, the parties, intending to be legally bound, agree to amend the Franchise Agreement as follows:
1. Reduced Royalty and APO for Limited Period of Time. Notwithstanding anything to the contrary contained in the Franchise Agreement, HR agrees that the royalty fee to be paid by Franchisee for the Franchised Restaurant will be reduced by: (A) 3% of Gross Sales for Gross Sales accruing during the Franchised Restaurant's first 12 mont
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees may offer an incentive related to the initial franchise fee. Specifically, if a new Hardees restaurant opens six months before the opening date outlined in the Development Agreement, Hardees will waive the remaining $15,000 of the initial franchise fee.
This incentive is designed to encourage franchisees to open their restaurants ahead of schedule. By meeting this condition, franchisees can reduce their initial investment, freeing up capital for other aspects of the business.
However, franchisees should be aware that by taking advantage of this incentive, they may not be entitled to any other incentives offered by Hardees. It's important to carefully consider the terms of the Development Agreement and any other potential incentives before making a decision. Franchisees should also note that this incentive program can be terminated if the restaurant doesn't open within 120 days after the contractual opening date, or if the franchisee defaults on any agreement with Hardees within the first three years of operation and fails to correct it.