Hardee’s is a fast-food chain that specializes in serving burgers and has been running successfully for the past six decades.
If you’re interested in investing in the Hardee’s franchise, you’ve come to the right place. Here, we provide all the information you need to know before investing. So, let’s get started.
About Hardee’s Franchise
he first Hardee’s restaurant opened in Greenville, North Carolina, and it became an immediate success. People stood in line to order from the menu, and the restaurant offered a drive-through window for fast service.
Initially, Hardee’s was known for its signature biscuits, made from scratch and served fresh, which became a big hit with customers.
In the 1990s, Hardee’s launched a new product called “Thickburgers,” which changed the direction of the restaurant.
This mouthwatering burger became popular among the public, and Hardee’s started becoming known for their burgers. The restaurant also offers other meals, beverages, and lunch options.
History Of Hardee’s Franchise
Hardee’s was established by Wilber Hardee in North Carolina in 1960. A year later, Wilber sought help for expansion and formed a partnership with James andw Leonard. They took complete control of the company and began franchising, leading to the opening of over 100 Hardee’s locations.
By the 1960s, the chain had grown to over 200 locations throughout the Midwest and Southwestern United States, and in the following years, Hardee’s became an internationally operating corporation.
In 1997, CKE, the parent company of Carl’s Jr., purchased Hardee’s and merged the two restaurants. Currently, Hardee’s has more than 2,200 units worldwide, with 95% of them owned by franchisees.
Hardee’s Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $1,469,000- $2,061,000 |
| Franchise-Fee | $25,000-$35,000 |
| Royalty-Fee | 4% of the gross sale |
| Liquidity | $300,000 |
| Area Requirement | N/A |
| Total Outlets | 2,200 |
How much do Hardee’s Franchise owners make?
A Hardee’s franchise owner can typically expect to make an average revenue of $1,192,000 and a profit of $149,236 per year corresponding to a profit margin of 13%.
This is how we calculated this amount:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 1147975.00 |
| Rent | 10.88% | (124842.28) |
| Insurance | 5.44% | (62421.14) |
| Salaries | 21.75% | (249684.56) |
| Franchise Royalty Fees | 5.44% | (62421.14) |
| Utilities | 2.18% | (24968.46) |
| Cost of Goods Sold (COGS) | 27.19% | (312105.70) |
| Labor (Variable) | 14.14% | (162294.97) |
| Total (Expenses) | 87.00% | (998738.25) |
| Net Profit | 13.00% | 149236.75 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Failure Rate Of Hardee’s
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 1727 | 1630 | -97 |
| 2021 | 1630 | 1561 | -69 |
| 2022 | 1561 | 1550 | -11 |
For the Franchised outlets:
- In 2020, the failure rate was (97)/1727×100≈5.62%
- In 2021, the failure rate was (69)/1630×100≈4.23%
- In 2022, the failure rate was (11)/1561×100≈0.70%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 119 | 174 | +55 |
| 2021 | 174 | 198 | +24 |
| 2022 | 198 | 202 | +4 |
For the Company-Owned outlets:
- In 2020, the growth rate was (55)/119×100≈46.21%
- In 2021, the growth rate was (24)/174×100≈13.79%
- In 2022, the growth rate was (4)/198×100≈2.02%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 1846 | 1804 | -42 |
| 2021 | 1804 | 1759 | -45 |
| 2022 | 1759 | 1752 | -7 |
For Total outlets:
- In 2020, the failure rate was (42)/1846×100≈2.28%
- In 2021, the failure rate was (45)/1804×100≈2.49%
- In 2022, the failure rate was (7)/1759×100≈0.40%
According to the above-mentioned data, we can see that the franchised outlets for Hardee’s declined from 2020 to 2022, showing a failure rate between 5.62% and 0.70%.
On the other hand, for company-owned outlets, the growth rate of Hardee’s was lying in the range between 46.21% and 2.02% for the same period of time.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Hardee’s franchise has declined in the years 2020-2022 showing a total failure rate between 2.28% and 0.40%.
Hardee’s Payback Period
The total investment of Hardee’s is $2,061,000 and the yearly profit is $149,236. So, to find out how long it will take to earn back the initial investment:
Payback Period = Total Investment / Yearly Profit = $2,061,000 / $149,236 = 13.9 years
Based on these figures, it will take approximately 14 years to recoup the initial investment for Hardee’s.
Training & Support
For training, a 10-day operations overview will be conducted at a location specified by the franchisor.
Before attending this overview, franchisees may be required to have 10% ownership, and the franchisor may commit to entering into agreements with them. Hardee’s also provides a training program known as FMTP, which covers the Red Burrito dual concept system.
The length of FMTP is eight weeks, although it may vary depending on the trainee’s prior experience. The FMTP will provide training to the operating principle, the general manager, and six employees who have been hired as shift leaders.
Term of Agreement & Renewal
The actual length of Hardee’s franchise term is 20 years from the date the franchised restaurant opens.
If the requirements are met, the term can be renewed for another ten years, or five years at their option, depending on the conditions of the term.
Hardee’s Comparison
| Company | Hardee’s | Whataburger |
|---|---|---|
| Founded In | 1960 | 1950 |
| Initial Investment | $1,469,000- $2,061,000 | $1,200,000 |
| Franchise-Fee | $25,000-$35,000 | $40,000 |
| Total Outlet | 2,200 | 830 |
| Annual Revenue | $920 Million | $2.5 Billion |
Frequently Asked Question
How much does it cost to open a Hardee's Franchise?
Opening a Hardee’s franchise requires an initial investment of $1,530,000- $1,995,000.
How many Hardees' Franchise locations are there?
Currently, Hardee’s has more than 2,200 franchise locations worldwide.
Who owns Hardee's?
Hardee’s Restaurants LLC is an American fast-food restaurant chain operated by CKE Restaurants Holdings Inc.
Where is Hardee's headquartered?
Hardee’s headquarters is located in Franklin, Tennessee.
How many locations does Hardee's have?
Hardee’s is committed to the best-tasting food in more than 1800 restaurants across the USA and 13 countries.
Who is the founder of Hardee's?
The founder of Hardee’s is Wilber Hardee. He opened the first Hardee’s restaurant in Greenville, North Carolina in 1960.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.