The Hardee's franchise in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Hardee's.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Average Revenue | $1,471,142 | USD | -- | FY25 |
| Median Revenue | $1,437,792 | USD | -- | FY25 |
| # Met / Exceeded Average | 61.0 | COUNT | -- | FY25 |
| % Met / Exceeded Average | 47.7% | PCT | -- | FY25 |
| Lowest | $508,677 | USD | -- | FY25 |
| Highest | $2,778,948 | USD | -- | FY25 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $1,437,792 | 100% |
| COGS | $-431,338 | 30% |
| Labor | $-402,582 | 28% |
| Occupancy | $-143,779 | 10% |
| Marketing | $-57,512 | 4% |
| Other Costs | $-115,023 | 8% |
| Royalty Fee (franchisor) | $-0 | 0% |
| Ad Fund Fee (franchisor) | $-0 | 0% |
| Owner's Profit | $287,558 | 20.0% |
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2023 | 1552 | -- | -- | -- | 1512 | -- | -- |
| 2024 | 1512 | -- | -- | -- | 1394 | -- | -- |
| 2025 | 1394 | -- | -- | -- | 1369 | -- | -- |
How Hardee's compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $263K – $630K | No Item 19 | 8.0% | -- |
| McDonald's | 12772 | $1.47M – $2.64M | $3.00M | 5.0% | 0.7x |
| Dunkin' | 8499 | $527K – $1.83M | No Item 19 | 5.9% | -- |
| Domino's Pizza | 7043 | $120K – $462K | $20K | 5.5% | 14.9x |
| Wendy's | 5552 | $1.41M – $2.90M | $2.33M | 4.0% | 0.9x |
| Burger King | 5524 | $1.80M – $3.30M | $1.67M | 4.5% | 1.5x |
| Dairy Queen | 4400 | $1.15M – $2.44M | No Item 19 | 4.0% | -- |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $540K | $1.35M | 5.0% | 0.2x |
| Arby's | 3400 | $313K – $3.45M | $1.39M | 4.0% | 1.4x |
The franchisee will operate a quick service restaurant offering a limited menu of breakfast, lunch and dinner products featuring charbroiled 100% Black Angus Thickburger sandwiches, Hand-Breaded Chicken Tenders, and Made from Scratch Biscuits.
Franchisees do not receive an exclusive territory. The franchisor reserves the right to operate and license others to operate Hardee's Restaurants at any location and through any channel of distribution, including the internet.
Item 3 discloses nine actions, including pending contract and termination disputes with Paradigm Investment Group and Arbor Capital Partners, and concluded matters involving disclosure disputes and no-poaching provisions with affiliates.
Key terms extracted from FDD Items 8-18. Click each section to expand.
Franchisor Financing Available: False
Details: Neither the franchisor nor its affiliates offer direct or indirect financing or guarantees for franchisee notes, leases, or obligations.
Pre Opening Assistance:
Ongoing Assistance:
Training Program:
Initial Training Hours: General Manager: ~195.32 hours; Shift Leader/GM: ~103.48 hours; Crew: ~38.97 hours
Location: Designated Training Facility and Star University (online)
Description: The FMTP includes restaurant-based training and online modules via the Star University Learning Management System.
Exclusive Territory: False
Territory Description: Franchisees are granted the right to operate at a specific 'Franchised Location'. Development Agreements cover a 'Development Territory' but do not grant exclusivity.
Can Franchisor Compete: True
Online Sales Rights: The franchisor reserves the right to use any channel of distribution, including the internet, to make sales within the territory.
Franchisees are granted a nonexclusive right to use the 'Hardee’s' name and Proprietary Marks (e.g., HAPPY STAR, FAMOUS STAR). Use in domain names or social media requires prior written consent.
No material patents are owned. The franchisor owns copyrights in advertising materials, the OPM, architectural plans, and computer programs.
No, but a designated Operating Principal (10% owner) must be a full-time operator unless a Multi-Unit Manager is approved.
Franchisees must sell only authorized products and services in strict conformity with OPM standards. Sales may be restricted to certain time periods. Online ordering and delivery participation is mandatory.
Term Length Years: 20 years
Renewal Conditions: Timely notice, sign general release, comply with training, be in good standing, complete required remodeling, and pay a renewal fee ($5,000 - $10,000).
Termination For Cause Conditions:
Transfer Conditions: Prior written consent, qualified transferee, reasonable sales price, satisfaction of monetary obligations, execution of general release, and payment of a $2,500 transfer fee.
Non Compete Post Termination:
Duration: 2 years
Radius: Within the Development Territory, within 2 miles of its border, or within 2 miles of any then-existing Hardee’s Restaurant.
Scope: Prohibits diverting business/customers or having an interest in a competing restaurant business (defined by 20% or more sales of Designated Entrée Items).
None
Required Suppliers:
Purchasing Cooperatives: None
Notes: Approximately 90% of purchases or leases for establishment and 65% of controllable purchases for ongoing operation must be from approved suppliers.
Franchisees must adhere to obligations regarding site selection, development, training, opening, fees, compliance with system standards, trademark usage, product restrictions, insurance, advertising, indemnification, management participation, recordkeeping, and post-termination covenants.
SBA 7(a) loan approvals for Hardee's franchisees from the SBA FOIA public dataset. Lenders report franchise codes at origination — this is real lending activity, not estimates.
Source: SBA FOIA 7(a) public data. Franchise codes matched by brand name. Not all SBA loans are captured; some franchisees finance without SBA programs.
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