Franchise Deep Dive: Hardee’s Franchise Costs, Fees, Profit and Data

Brand history

Hardee’s, the American fast-food concept, started over 60 years ago. In Greenville, North Carolina, Wilber Hardee opened his first location, offering $0.15 burgers and $0.10 fries. The brand quickly grew, exceeding 200 locations by the end of the 1960s.

Approximately two decades after its founding, Hardee’s opened its 2,000th restaurant. Now, the concept continues to expand and has become both an American staple and international concept.

According to Entrepreneur, there are 2,153 Hardee’s locations as of 2022. The growth trajectory of the concept has not been entirely positive, with a few downward turns over the years, but the brand as a whole has maintained a strong presence.

One of the key drivers is likely its willingness to adapt and offer new menu items to guests. Though it started with burgers, fries and milkshakes in the 1960s, Hardee’s began to offer biscuits and roast beef sandwiches in the 1970s, Cinnamon 'N' Raisin™ biscuits in the ‘80s, Thickburgers® in the 2000s and Froot Loops® mini donuts in the 2010s.

The Hardee’s business model leans heavily on a combination of value and convenience. The brand continues to market its burgers, for example, as “made with premium 100% angus beef patties,” but the meals remain accessible and affordable.

Store models available

There are multiple store models available with Hardee’s:

• Freestanding: Freestanding Hardee’s restaurants stand alone, offering a seating capacity of between 54 and 72 spots. Typically, these buildings are between 2,500 and 3,037 square feet, and they are established in areas with a residential population of 25,000 people or more.

• End Caps: The end cap model allows a Hardee’s restaurant to be built into an existing structure. This reduces the required investment and is marketed as a more cost-effective way to establish a unit in smaller communities. Hardee’s end caps are commonly found within Love’s travel and truck stops.

• Conversions: Hardee’s franchisees are able to convert or renovate an existing building. Rather than initiating new construction, a conversion is another affordable way to leverage existing real estate for an affordable entry to a smaller community.

• Non-Traditional: Airports, malls, food courts and more also make a great place for Hardee’s. The restaurants can be designed in a way that fits well with less traditional spaces.

Sales and profit

Hardee’s average annual sales across thousands of restaurants is estimated to be $1,147,975.

While franchisors cannot make claims about the exact amount franchise owners should expect to make, the brand’s franchising website says it encourages prospective investors to discuss the opportunity with current franchisees and is willing to facilitate connections for this purpose.

The Hardee’s franchising website notes an initial investment of $1,499,000 – $2,228,000, including a franchise fee of “$25,000 to $35,000 depending on the number of restaurants in operation.” There is also a $10,000 development fee.

Franchisees are also required to have a net worth of at least $1,000,000 and $300,000 in liquid assets.

The franchise fee for Hardee’s can range from $25,000 to $35,000. The exact amount depends on the number of restaurants a franchisee will be operating.

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