Hardee’s, a well-known name in the quick-service restaurant industry, was founded by Wilber Hardee on September 3, 1960, in Greenville, North Carolina. The initial restaurant was a simple walk-up establishment offering a limited menu that included 15-cent hamburgers, 10-cent fries, and 20-cent milkshakes. The brand quickly gained popularity, and by the end of the 1960s, it had expanded to nearly 200 locations, including its first international outlet in West Germany.

Hardee’s began franchising in 1962, just two years after its inception, which significantly contributed to its rapid growth. The company’s headquarters moved to Franklin, Tennessee, after its acquisition by CKE Restaurants Holdings, Inc., in 1997. Today, Hardee’s operates over 1,800 restaurants across the United States and 13 other countries, continuing its legacy of offering high-quality, delicious food.

A key differentiator for Hardee’s is its emphasis on quality and innovation. The brand is renowned for its Made from Scratch™ Biscuits, Hand-Breaded Chicken Tenders™, and the premium 100% Angus Beef Thickburgers. These menu items have helped Hardee’s stand out in a crowded market by appealing to customers looking for superior taste and quality.

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Initial investment

Here’s what you can expect to spend to start a Hardee's franchise.

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.

Initial Franchise Fee

The initial franchise fee for a newly-developed Hardee’s Restaurant ranges from $25,000 to $35,000, depending on the type and location of the restaurant.

Royalty Fee

The royalty fee is 4% of the restaurant’s gross sales.

Marketing/Advertising Fee

Franchisees must contribute 5% of their gross sales to the marketing and advertising fund.

National Branding Fee

The national branding fee is included in the marketing/advertising fee of 5%.

Technology Fee

The technology fee is $200 per month per restaurant.

Transfer Fees

The transfer fee is $5,000, payable upon the transfer of the franchise.

Renewal Fees

The renewal fee is $5,000, payable upon the renewal of the franchise agreement.

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Franchise pros and cons

Pros

• Solid corporate support: Hardee’s has put in place strong franchisee support to ensure the success of its franchisees. The CKE support team provides new franchisees with site selection, restaurant design, construction, and equipment orders, as well as senior management support.
• Comprehensive training: The franchisor offers new franchisees extensive training to get them on board. They have an 8-week franchise training program which includes classroom and on-the-job training. This helps franchisees understand Hardee’s restaurant concept and be set for growth and profitability from the onset. 
• Wide and varied menu: Hardee’s is well known for its great menu of tasty foods. From its premium thick burgers, bacon-topped burgers, and crispy chicken sandwiches, as well as other tasty related foods, Hardee’s is well-packed and serves a diverse community. It sets the franchise apart from its competition by enabling it to open restaurants in locations with different religious and cultural beliefs, like the Middle East.
• Proven Business Model: Hardee’s brand has been operating for more than 60 years. Having served different localities and maintained their signature thick burgers and other delicacies, they have a well-established business culture. They advise new franchisees on which business strategies will work for them and which will not.
• Fast-growing brand: Hardee’s is a steadily growing brand. Currently, it has a presence in 44 US states and 43 locations globally and is still growing. This gives new franchisees the potential for growth and expansion of their business.
• Global presence: Hardee’s boasts of having locations all over the world. It is a well-known franchise with locations in the United States, the Middle East, Latin America, and Asia. New franchisees can easily market the brand’s products and are guaranteed easy market penetration.

Cons

• No financial assistance: Hardee’s does not offer franchisees any financial assistance to establish their restaurants. Also, the franchisor or its affiliates do not guarantee any lease, obligation, or note.
• Previous franchise or restaurant experience: To become a Hardee’s franchisee, you’re required to have run a franchise previously or have worked in the restaurant industry. This can be a limiting factor for investors drawn from the general industry. The franchisor also limits the number of initial units that can be opened to a minimum of three, which can be costly.
• No territory protection: Hardee’s franchise does not offer any exclusive territory protection to any franchisee. This is a big challenge for newly established franchisees. They face competition from franchises granted by the parent company or from competitive brands controlled by the franchisor.
• Competition: Just like any other business, competition is a big challenge for Hardee’s restaurant. The industry has seen the entrance of market leaders like Burger King, which leads to fewer sales and profitability.
• No absentee ownership: Hardee’s franchise does not allow semi-absentee ownership. Franchisees are required to fully manage their restaurants. As a result, Hardee’s franchise is not a good choice for investors seeking a passive investment. 

How to open A hardee’s franchise

Opening a Hardee's franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Hardee's franchise.

1. Assess Financial Requirements

• Liquid Capital: Ensure you have at least $300,000 in liquid assets.
• Net Worth: You should have a minimum net worth of $1,000,000.
• Initial Investment: The total investment required to open a Hardee’s franchise ranges from $1.5 million to $2 million, depending on the format and location.

2. Evaluate Franchise Formats

• Standard Franchise: This format allows for the development and operation of a standalone Hardee’s restaurant.
• Dual Concept: Combines Hardee’s with Red Burrito, featuring both menus in one location. This format is typically more expensive.
• Co-Brand Location: Allows for a Hardee’s or Dual Concept restaurant to be attached to a gas station, truck stop, or convenience store.

3. Understand Fees and Royalties

• Franchise Fee: The initial franchise fee ranges from $15,000 to $25,000.
• Royalty Fee: Franchisees must pay a royalty fee of 3.5% of monthly gross sales for the first five years, increasing to 4% thereafter.
• Advertising Fee: An additional fee of up to 7% of monthly gross sales is required for advertising and promotional efforts, including a national advertising fund and regional co-op programs.

4. Submit a Franchise Application

• Initial Inquiry: Contact Hardee’s franchise development team to express your interest and request a franchise application.
• Application Review: Complete and submit the application form. The franchise team will review your financial qualifications and business background.
• Approval Process: If approved, you will receive a Franchise Disclosure Document (FDD) detailing the franchise agreement and obligations.

5. Secure a Location and Build

• Site Selection: Work with Hardee’s real estate team to identify a suitable location that meets the brand’s criteria.
• Lease or Purchase: Secure the property through lease or purchase agreements.
• Construction: Oversee the construction or renovation of the restaurant according to Hardee’s specifications and brand standards.

6. Training and Opening

• Training Program: Participate in Hardee’s comprehensive training program, which covers restaurant operations, management, and brand standards.
• Grand Opening: Coordinate with Hardee’s support team to plan and execute a successful grand opening event to attract customers and generate initial sales.

Disclaimer

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