Under what condition will Hardees waive the remaining $15,000 initial franchise fee?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ADDENDUM to the Hardee's Restaurant Franchise Agreement dated as of, |
|---|
| ("Franchise |
| Agreement") |
| between |
| Hardee's |
| Restaurants |
| LLC |
| ("HR") |
| and |
| ("Franchisee") is entered into simultaneously with the |
| Franchise Agreement. |
| RECITALS |
| E. |
| In order to stimulate the development of new franchised Hardee's Restaurants and the |
| continued expansion of the System at eligible travel center and gas and convenience locations, HR has |
| established the 2025 HR Development Incentive Program for Conversion Restaurants (the "Conversion |
| Restaurant Program"). |
| F. |
| To be eligible for the Conversion Restaurant Program, the following requirements must be |
| satisfied: (i) the travel center location or gas and convenience location must be opened pursuant to a |
| Development Agreement dated no later than May 24, 2026, (ii) 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, (iii) Franchisee may not be in default of its obligations under its |
| existing franchise agreements or related agreements with HR or its affiliates, (iv) Franchisee must be |
| approved for growth by HR and its affiliates, (v) Franchisee must satisfy HR's then-current financial and |
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees may waive the remaining portion of the initial franchise fee under a specific condition. If a franchisee manages to open their Hardees restaurant six months prior to the 'Opening Date' that is identified in the Development Agreement, Hardees will waive the collection of the remaining $15,000 of the initial franchise fee.
This waiver serves as an incentive for franchisees to expedite the opening of their restaurants. By meeting the accelerated timeline, franchisees can reduce their initial investment, freeing up capital for other operational needs. This can be a significant benefit, especially for new franchisees who may be managing tight budgets during the initial setup phase.
However, it's important for prospective Hardees franchisees to carefully review the Development Agreement to understand the defined 'Opening Date' and all associated terms and conditions. Franchisees should also confirm that no other incentives are forfeited by taking advantage of this initial franchise fee waiver, as stated in the addendum that signing it means they will not be entitled to any other incentive that may be offered by Hardees.