From the filed FDD — automated extraction, check the source
2026 FDD
Hardee's
Burgers · parent company: not identified
Hardee's is a fast-food burger chain known for charbroiled burgers, fried chicken, and made-from-scratch biscuit breakfasts (sister brand to Carl's Jr.). A franchisee operates a quick-service restaurant with dine-in and drive-thru, managing crews, food prep, and daily operations.
Hardee's net unit count declined 15.3% over 2022–2026 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Proven & steady
A real track record, though with soft spots. Units fell 15% (2022–2026: 1,754 → 1,485); the fiscal 2026 exit rate was 6.4%, above the 4.7% median across 11 comparable systems (burgers). SBA loans to its franchisees approved FY1991–2020 charged off more often than franchise loans of the same years (19 vs about 13 expected, 1.5×; on this few loans a gap this size could still be partly chance).
Exit rate · fiscal 2026
6.4%
vs 4.7% median across 11 comparable systems (burgers)
Cost to open
$1.4M–$2.6M
Item 7 total investment range
SBA loan losses · vs same-year loans
1.5×
19 of 83 charged off vs ~13 expected
Market density · Iowa
Typical density
10% thinner than the national average
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Data as of 2026-10-29. Figures come from Hardee's's public FDD filings (latest: MN 2026, extracted 2026-07-22) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
Buying an existing Hardee's? Transfer fee $2,500, resale record and asking-price check →
Where the sources disagree
FDD record · SBA loans · model · auditor
The franchisee loan record is weaker than the operating record suggests, though not far enough from same-year loans to cap the rating — ask franchisees about financing and early failures.
FDD record · Item 20
Steady operating record
Units fell 15% (2022–2026: 1,754 → 1,485); exit rate 6.4% (fiscal 2026) vs 4.7% median.
SBA loans · vs same-year loans
More defaults than expected (could be chance) (1.5×)
19 charge-offs among 83 resolved loans approved FY1991–2020; about 13 expected.
Modeled risk
Lower risk
The brand's own loan record contradicts this prediction; the record leads.
Auditor opinion · Item 21
Clean opinion
Unqualified audit, 2026 FDD. Says nothing about franchisee results.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2022–2026
Survival record
FDD Item 20 · outlet status by year
In fiscal 2026, 87 of 1,369 franchised outlets left the system — an exit rate of 6.4% (fiscal 2026), vs a 4.7% median across 11 comparable systems (burgers). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Outlets at start | 1,765 | 1,754 | 1,707 | 1,598 | 1,571 |
| Opened | 16 | 16 | 13 | 8 | 7 |
| Transfers | 20 | 7 | 191 | 10 | 2 |
| Terminations | 0 | 0 | 4 | 7 | 12 |
| Non-renewals | 5 | 6 | 6 | 9 | 3 |
| Reacquired by franchisor | 3 | 0 | 19 | 0 | 2 |
| Ceased — other reasons | 18 | 47 | 103 | 17 | 72 |
| Outlets at end | 1,754 | 1,707 | 1,598 | 1,571 | 1,485 |
| Net change | -11 | -47 | -109 | -27 | -86 |
The franchisor's own finances
FDD ITEM 21 · AUDITED STATEMENTS · 2026 FDD
KPMG LLP gave an unmodified (clean) opinion on the statements in the 2026 FDD; revenue rose 1% from FY2024 to FY2026.
This is the company selling the franchise, not any franchisee. A clean opinion means the statements are fairly presented — not that the business is healthy.
Revenue · FY2026
$668.6M
p. 483 · matched to statement
Net income · FY2026
$104.0M
p. 483 · matched to statement
Where FY2026 revenue came from
43% royalties
initial-fee share not extracted
Show the statement figures ↓Hide the evidence ↑
| Fiscal year | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Total revenue | $661.6Mp. 452 · matched to statement | $671.4Mp. 452 · matched to statement | $668.6Mp. 483 · matched to statement |
| Royalty revenue | $292.7Mextracted · not cross-checked | $288.1Mextracted · not cross-checked | $285.3Mextracted · not cross-checked |
| Net income (loss) | $108.9Mp. 452 · matched to statement | $103.2Mp. 452 · matched to statement | $104.0Mp. 483 · matched to statement |
| Cash at year end | not extracted | $10.6Mp. 482 | $10.1Mp. 482 |
The lender's view
SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years
Banks have made 107 SBA-backed loans to Hardee's franchisees since 1991. Of the 83 approved FY1991–2020 that have resolved, 19 charged off — where about 13 would be expected for franchise loans made in the same years. That is 1.5× the expected rate: these loans defaulted far more often than comparable franchise loans (a gap this size on this many loans could be chance).
All-time, 19 of 83 resolved loans charged off (22.9%). That raw figure mixes every approval year since 1991 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score.
1.5×
19 of 83 resolved (FY1991–2020) vs ~13 expected
22.9%
19 of 83 resolved, every approval year
46.0%
charged-off $ ÷ approved $, defaulted loans
$1,820,400
what recent franchisees borrowed
79 mo
approval → charge-off, defaulted loans
3 vs 4
distinct banks still lending
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO HARDEE'S BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $25,000 franchise fee (Item 5) and a total investment of $1.4M–$2.6M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$1.4M–$2.6M
all-in investment range
Franchise fee (Item 5)
$25,000
upfront, one-time
Royalty (Item 6)
4%
of sales, ongoing
Starts at the Item 19 median of $1.3M from Hardee's latest FDD. Read which units built that figure, then check it with current and former owners.
Royalty you'd pay / yr
$52K
4% of sales, before profit
Over a 10-yr term
$520K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on food and packaging cost, labor, rent, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for Hardee's with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2026 FDD
The headline figure is Average Revenue for FY26 (53 weeks, Jan 28, 2025 - Jan 26, 2026), for 975 of 1,287 outlets open at year end, leaving out non-freestanding (travel plaza, c-store, college, toll plaza, airport), Dual Concept, incomplete revenue data for FY26 and others. It shows no costs, so it says nothing about what an owner keeps.
Graded on three things the filing states: coverage (2 points if the figure covers at least 75% of the units it is compared with, 1 point for 50–75%), centre (2 points if it prints both a median and a mean, 1 for one of them), and costs (2 points for costs through a profit line or full cost detail, 1 for some cost items). 5–6 points = More complete, 3–4 = Partial, 0–2 = Limited. The grade describes the disclosure, not the business.
Show the basis ↓Hide the evidence ↑
| What is measured | Average Revenue (revenue) |
| Period | FY26 (53 weeks, Jan 28, 2025 - Jan 26, 2026) |
| Whose results | Franchised outlets |
| Units included | 975 of 1,287 franchised outlets at the end of FY2026 (Item 20) |
| Left out |
|
| Average (mean) | $1.3M |
| Median | $1.3M |
| Mean vs median | mean 4.1% above median |
| Met or beat the average | 471 (50.1%) |
| Costs shown | None — sales only |
| Where | p. 74 (Item 19 runs pp. 74–76) |
Modeled risk
FDD Risk Score · a prediction from disclosure and loan-file features
This brand's own loan record is worse than the model predicts: its franchisees' SBA loans charged off at 1.5× the rate of same-year franchise loans, where the model expects about 0.7×. We lead with the observed record; the model is shown for context.
Observed · vs same-year loans
1.5×
19 of 83 seasoned loans charged off
Risk percentile
10th
Checkable · higher = riskier
Modeled · vs same-year loans
0.7×
≈ 11.4% at the all-loan vintage mix
Top drivers: System size (log units) (lowers) · Item 3 litigation (log) (lowers) · Investment ceiling (log) (lowers) · Royalty rate (raises). The observed record differs from the model, so treat the score as context only. A linear scorecard trained on brands' vintage-adjusted SBA loss records; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
We have no verified public-record signals published for Hardee's. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.
12 questions to ask a Hardee's franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what Hardee's has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
Hardee's own Item 20 shows 87 of 1,369 franchised outlets left the system in fiscal 2026 — about 6.4%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2026
- 02
2 units transferred to new owners in fiscal 2026. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2026
- 03
The system went from 1,754 units to 1,485 over 5 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2022–FY2026
- 04
SBA loans to Hardee's franchisees approved 1991–2020 defaulted far more often than franchise loans made in the same years: 19 charge-offs among 83 resolved loans, where about 13 would be expected (1.5×). Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of how these loans ended, from public federal records matched by SBA franchise code — independent of anything the franchisor discloses — compared with franchise loans made in the same years. A charge-off is a loan outcome, not proof the business closed.
SBA 7(a)/504 loan record, seasoned loans FY1991–FY2020 · 1.5× of same-vintage franchise loans
- 05
Item 7 says the low end to open is $1.4M; the average recent SBA loan to Hardee's franchisees was $1.8M. What did you actually spend to open, all in — and did your loan cover anything beyond the build-out?
Lenders size loans to the project they finance. If owners say they spent near the loan figure rather than the Item 7 floor, budget from what they spent.
FDD Item 7 vs SBA approvals FY2020+
- 06
You pay 4.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 07
Hardee's makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2026
- 08
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 09
Item 3 discloses 12 legal matters. Do you know what those were about, and were any brought by franchisees?
Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.
FDD Item 3 · 2026
- 10
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 11
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 12
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Hardee's numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Hardee's numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Hardee's franchise questions, answered from the filings
How many Hardee's franchised outlets left the system last year?
In Hardee's's latest FDD Item 20 (fiscal 2026), 87 of 1,369 franchised outlets left the system — an exit rate of 6.4% — compared with a 4.7% median across 11 comparable systems (burgers) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
How much does a Hardee's franchise cost?
Per Hardee's's 2026 FDD, buying in requires an initial franchise fee of $25,000 (Item 5) and a total initial investment of $1.4M–$2.6M (Item 7).
What royalty does Hardee's charge?
Hardee's charges an ongoing royalty of 4.0% of gross sales, per Item 6 of its 2026 FDD.
Does Hardee's disclose earnings (Item 19)?
Yes — Hardee's makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $1.3M. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for Hardee's franchises default?
SBA loans to Hardee's franchisees approved 1991–2020 defaulted far more often than franchise loans made in the same years: 19 charge-offs among 83 resolved loans, where about 13 would be expected (1.5×). All-time, 19 of 83 resolved loans since 1991 charged off (22.9%); that raw figure mixes every approval year, so we compare with same-year loans instead. A charge-off is a loan loss, not proof the business closed. Source: public SBA 7(a)/504 FOIA data.