Hardees
Hardees offers quick-service dining with classic American fare like charbroiled burgers and chicken tenders. Known for its Thickburgers and Hand-Breaded Chicken Tenders, Hardees operates in the fast-food restaurant industry.
About Hardees
Hardee's Restaurants LLC is an American fast-food restaurant chain operated by CKE Restaurants Holdings, Inc. ("CKE") with locations primarily in the Southern and Midwestern United States. The company has evolved through several corporate ownerships since its establishment in 1960 in North Carolina.
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Hardees franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a newly-developed Hardee's Restaurant ranges from approximately $1,375,000 to $2,637,395 [p.1]. This figure includes various costs but does not include the cost of buying or renting the business location.
What is the initial franchise fee?
This isn't specified in the excerpts. The excerpts discuss deferring collection of initial fees but do not provide details about the amount or structure of the initial franchise fee.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is set forth in Exhibit 1, which includes reductions during the first three years of operation. Specifically, it starts at 3% of Gross Sales for the first year, then decreases to 2% for the second year, and 1% for the third year. After these initial years, the fees revert to those specified in the Franchise Agreement [p.505]. The advertising and promotion obligation (APO) is also set forth in Exhibit 1 and must be paid according to HR's direction, with part going to the Hardee's National Advertising Fund and the remainder either to a Regional Co-op or spent on local store marketing [p.153].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the provided excerpts. However, you can potentially renew the agreement if you remain a franchisee for the Renewal Term, as detailed on [p.143]. Failure to timely sign and return the renewal agreement will result in termination of the franchise at the expiration of the Initial Term.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the conditions under which a franchisee can sell or transfer their franchise. However, it is mentioned that good cause is required for transferring ownership of a franchise except in certain circumstances [p.5].
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor can terminate a franchise agreement prior to its expiration if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after receiving written notice and a reasonable opportunity to do so, not exceeding 30 days.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific net worth or liquid capital requirements for franchisees to qualify. Instead, it emphasizes that you must demonstrate sufficient financial capabilities and furnish financial statements as required by HR [p.47, p.103].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under either the Franchise Agreement [p.56, p.57] or the Development Agreement. You may face competition from other franchisees, outlets owned and operated by HR, and competitive brands controlled by HR.
What training and ongoing support does the franchisor provide?
The franchisor provides initial opening training support, including assistance in opening the Franchised Restaurant and training employees as deemed appropriate. They also offer the Free Manager Training Program (FMTP) to key employees at no additional cost within two years of signing the agreement, though they can modify or waive this based on individual experience. For additional training beyond the initial FMTP, a fee may apply [p.48]. The franchisor retains discretion over when and where to provide such training [p.43] and may require further training programs depending on their assessment of needs [p.228].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares financial performance information. According to [p.69], the franchisor provides an average revenue figure for a number of freestanding Hardee's Restaurants operated by both the company and its franchisees during a specific period. However, this information can be supplemented or additional financial performance information provided only under certain conditions as outlined in the FDD.
What am I restricted to selling, and where must I buy supplies?
You must sell only those products and services expressly authorized by the OPM or in writing from the franchisor [p.63]. You are required to purchase most food items and other goods from a master distributor, currently McLane Company, Inc., as specified in the FDD [p.37]. Additionally, for equipment, smallwares, and supplies, you must buy from Wasserstrom Holdings, Inc. and its subsidiaries to be eligible for certain revenue-sharing incentives [p.39].