Hardee's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hardee's is a quick-service burger franchise known for charbroiled burgers, chicken, and made-from-scratch breakfast biscuits. Franchisees run restaurants managing food prep, drive-thru service, staffing, and local marketing.
FranchiseVerdict summary · 2026
A Hardee's franchise requires a total initial investment of $1.4M – $2.6M, including a $25K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 39.0% charge-off rate across 55 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.4M – $2.6M
- 96th pct Service Resta…
- Avg gross sales
- $1.3M
- 26th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 1,485
- 93rd pct Service Resta…
- SBA charge-off
- 39.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.4M – $2.6M including a $25K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.3M).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 39.0% across 55 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -9.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hardee's Restaurants LLC
- Parent company
- Hardee's Funding LLC
- Ultimate parent
- Roark Capital Management, LLC (affiliated private equity)
- Predecessor
- Hardee's Food Systems, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Joe Guith
- Incorporated in
- Delaware
- HQ
- 6700 Tower Circle, Suite 1000, Franklin, Tennessee 37067
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $849.6M
- vs $840.8M prior year
Overview
About
- CEO
- Joe Guith
- Headquarters
- Tennessee
- Founded
- 2013
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 203% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown9 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $25K | |
| Opening Training Support Team Fee | $32K | $72K | |
| Point of Sale System | $55K | $72K | |
| Soft Costs | $5K | $25K | |
| Equipment | $350K | $540K | |
| Signage | $15K | $55K | |
| Initial Training | $20K | $60K | |
| Pre-Opening Costs | $26K | $44K | |
| Additional Funds - 3 months | $160K | $250K | |
| Total initial investment | $688K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.4M – $2.6M
- Bottom third — review vs category
- Liquid capital req'd
- $160K – $250K
- Bottom third — review vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 4.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 5.5%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 5.5% of gross sales |
| Technology fee | $160 |
| Training fee | $500 |
| Transfer fee | $3K |
| Renewal fee | $5K |
| Inventory (initial) | $18K – $21K |
| Total fee load | 9.5% of rev |
What do units actually make?
Average unit sales run 17% above the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Hardee's until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$2.2M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Hardee's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 940 outlets
- vs category median 18 · large
- Range (low → high)
- $413K→$3.6M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 0.7x.
Fee burden
Total ongoing fee load of 9.5% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -9.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Hardee's Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,485
- Opened
- 8
- Last reporting year
- Closed
- 17
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 9
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 198
- Corporate units in the system
- % franchised
- 87%
- vs corporate-owned
- Net growth (3-yr)
- -9.5%
- Net unit change over 3 years
- 3-yr CAGR
- -9.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 17
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 9
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 5
- Franchisor's next-year forecast
- Transfer rate
- 0.6%
- Owners selling to other franchisees
- Termination rate
- 0.6%
- Franchisor-initiated terminations
- Ceased ops
- 0.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 55
- Loan volume
- $44.9M
- Median loan
- $1.3M
- 50th percentile
- Charge-off rate
- 39.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 61.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 16
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 294
- 2.7 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Hardee's franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hardee's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 4-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 39.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 39.0% — 143% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Hardee's presents high investment risk due to declining unit count, undisclosed profitability, multiple litigation matters, unprotected territory, and royalty structure that may not align with actual franchisee earnings.
Litigation (Item 3)
HR is defendant in one pending case (Paradigm Investment Group v. HR, TRO/breach of contract dispute over franchise termination) and plaintiff in three pending cases against former/current franchisees (Arbor Capital Partners x2, and ARC Burger LLC) for breach of franchise/sublease/promissory note obligations; ARC Burger filed Chapter 7 bankruptcy during litigation. Concluded affiliate (CJR) litigation includes a $5.5M settlement with a Canadian Carl's Jr. developer (6Points) and smaller wage/hour class settlements.
Largest disclosed settlement: $5,500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINORDeclining unit count (-1.8% YoY) indicates system contraction and shrinking market opportunity
- 02HIGHNine active/pending litigation cases including contract breaches, conversion claims, and data privacy breaches signal franchisor governance and operational issues
- 03MINORUnprotected territory creates direct competition risk from other Hardee's franchisees in same market
- 04MINORHigh royalty burden (4-5% of gross sales) on average revenue of $1.47M means $58.8k-$73.6k annual royalties with unknown net profitability
- 05MED20-year term locks franchisee into declining brand with limited flexibility
- 06HIGHPending litigation by franchisor against Arbor Capital Partners for breach and conversion suggests operational disputes with other franchise partners
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 2 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | AAA office nearest HR's principal office (Franklin, Tennessee), subject to applicable state law |
| Jury trial waiver | No |
| Governing law | Tennessee |
| Litigation count | 4 |
View Item 3 litigation summary
HR is defendant in one pending case (Paradigm Investment Group v. HR, TRO/breach of contract dispute over franchise termination) and plaintiff in three pending cases against former/current franchisees (Arbor Capital Partners x2, and ARC Burger LLC) for breach of franchise/sublease/promissory note obligations; ARC Burger filed Chapter 7 bankruptcy during litigation. Concluded affiliate (CJR) litigation includes a $5.5M settlement with a Canadian Carl's Jr. developer (6Points) and smaller wage/hour class settlements.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 155 hrs
- Training location
- Designated Training Facility / Hardee's Restaurant designated by HR
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- franchisor provides guidelines/consultation and site acceptance; franchisee locates and proposes site
- Franchisor financing
- Not offered
- Item 10
- POS system
- Genius POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Genius POS
Item 20 · call current owners
Franchisee Contacts
83 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hardee's · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hardee's franchise?
The total investment to open a Hardee's franchise ranges from $1.4M – $2.6M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hardee's franchise owners earn?
According to Item 19 of the Hardee's FDD, the average gross sales per unit is $1.3M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Hardee's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Hardee's FDD and qualifies whose outlets they describe.
What is Hardee's's franchise failure rate?
Based on SBA 7(a) loan data, Hardee's has a charge-off rate of 39.0% across 55 loans, meaning 39.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Hardee's franchise locations are there?
As of their most recent FDD filing, Hardee's has 1,485 total units in the United States, including 1,287 franchised units and 198 company-owned units. 8 new units were opened in the latest reporting year.
Is Hardee's a good franchise to buy?
FranchiseVerdict rates Hardee's as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.