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Hardee's Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Hardee's Franchise?
To open a Hardee's franchise, you should be prepared for a significant initial investment ranging from $1,375,000 to $2,637,395. This includes a franchise fee of $25,000. Additionally, you will need to demonstrate a net worth of between $500,000 and $1,000,000, along with having cash readily available to cover the startup costs. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for this venture.
What Are the Ongoing Fees Associated with a Hardee's Franchise?
As a Hardee's franchisee, you will be responsible for ongoing fees, including a royalty fee of 4.00% of your gross sales and a marketing fee of 5.50%. These fees are essential for maintaining brand presence and operational support. It’s important to factor these costs into your financial planning to ensure that your franchise remains profitable over time.
What Are the Financial Performance Metrics for Hardee's Franchise Units?
Hardee's franchise units show promising financial performance, with an average annual revenue of approximately $1,296,031. The median annual revenue is slightly lower at $1,241,097, while revenues can range from a low of $363,646 to a high of $3,669,676. These figures highlight the potential for profitability, but they also underscore the importance of location and management in achieving success.
What Is the Breakeven Timeline for a Hardee's Franchise?
Franchisees can expect to reach breakeven within about 12 months of operation. The investment payback period is approximately 16 months, making it a relatively quick turnaround compared to other franchise opportunities. Understanding this timeline can help potential franchisees assess their cash flow needs and plan for the early stages of their business effectively.
Hardee's Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Hardee's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Units | 1754 | 1707 | 1597 |
| Net Change YoY | -47 | -110 | |
| Franchised Units | 1552 | 1512 | 1393 |
| Net Change YoY | -40 | -119 | |
| Corporate Units | 202 | 195 | 204 |
| Net Change YoY | -7 | 9 |
Investment Overview
The initial investment to open a Hardee's franchise ranges from $1,375,000 to $2,637,395. This includes a franchise fee of $25,000. Potential franchisees should also be prepared for ongoing costs, such as a royalty fee of 4% on gross sales and a marketing fee of 5.5%. The total cash required for startup is significant, reflecting the brand's established presence in the fast-food market.
Financial Performance
Hardee's franchises generate substantial revenue, with an average annual revenue of approximately $1,296,031 per unit. The median revenue stands at $1,241,097, while the lowest recorded revenue is $363,646 and the highest reaches $3,669,676. These figures indicate the potential for profitability, though performance can vary widely based on location and management.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation, making it a relatively quick turnaround for new owners. The investment payback period is approximately 16 months, allowing franchisees to recoup their initial costs and start seeing returns on their investment in a timely manner.
Franchised and Corporate Units
As of 2024, Hardee's operates a total of 1,597 units, with 1,393 being franchised and 204 corporate-owned. The trend shows a gradual decrease in the number of franchised units over the past few years, suggesting a potential shift in the company’s growth strategy or market dynamics.
Operating Expenses
Average operating expenses for a Hardee's franchise are around $489,623 annually. Key expenses include utilities, general and administrative costs, and advertising. Effective management of these expenses is crucial for maximizing profitability and ensuring the smooth operation of the franchise unit.
Company Background
Hardee's is a well-known fast-food chain specializing in burgers, chicken, and breakfast items. Founded in 1960, the brand has grown to become a prominent player in the quick-service restaurant industry. With a focus on quality ingredients and innovative menu offerings, Hardee's continues to attract a loyal customer base while expanding its franchise opportunities across the country.
Frequently Asked Questions
The initial investment for a Hardee's franchise ranges from $1,375,000 to $2,637,395. This includes the franchise fee of $25,000 and other startup costs.