Guide 9 min read Updated May 6, 2026

Hardee's Franchise Cost (2026): $1.5M–$3M to Open

Q: How much equity injection do I need for a Hardee's SBA loan?

SBA requires a minimum 10% equity injection of total project cost. On Hardee's builds, lenders typically require 20–25% borrower equity — on a $2.25M midpoint, that's $450K–$563K in documented borrower funds. Equity can come from personal savings or ROBS (retirement account rollover); borrowed equity does not qualify under SBA rules. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.

Hardee's franchise startup costs run $1.5M–$3M for a quick-service burger restaurant, primarily in Western US markets. Hardee's is operated by CKE Restaurants Holdings alongside Carl's Jr. — the two brands share a common menu and operational platform.

Hardees franchise costs at a glance

Total investment	$1.5M–$3M
Franchise fee	$35,000
Royalty	4%
Ad / marketing fee	5%
Liquid capital required	$500,000
Net worth required	$1M

Source: Hardees Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.

Key takeaways

Total estimated startup cost: $1.5M–$3M (full QSR burger restaurant build-out)
Franchise fee: $35,000
Ongoing royalty: 4% of net sales; advertising fund: 5%
Net worth requirement: $1M+; liquid capital requirement: $500K+
Parent: CKE Restaurants Holdings — Hardee's and Carl's Jr. share a common menu and operational platform

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Total startup cost breakdown

Per the current FDD, total estimated initial investment for a Hardee's franchise runs $1,500,000–$3,000,000. Full QSR restaurant construction — including kitchen build-out, drive-through infrastructure, and branded interiors — drives investment at the higher end of the QSR spectrum:

Franchise fee: $35,000
Real estate and leasehold improvements / construction: $800,000–$1,800,000
Kitchen equipment and smallwares: $200,000–$450,000
Drive-through and exterior signage: $50,000–$120,000
Technology (POS, digital menu boards, kitchen display): $40,000–$80,000
Furniture, fixtures, and interior build-out: $80,000–$200,000
Opening inventory: $20,000–$40,000
Training and travel: $20,000–$50,000
Working capital: $50,000–$100,000
Miscellaneous pre-opening and permits: $30,000–$75,000

Ongoing fees and royalty structure

Hardee's franchisees pay a 4% royalty on gross sales plus a 5% advertising fund contribution — for a combined 9% of gross sales. The 4% royalty is competitive for a legacy QSR burger brand; the 5% ad fund is substantial and supports national and regional media spend that drives consistent brand traffic. CKE's shared infrastructure across Hardee's and Carl's Jr. allows marketing spend and operational development to benefit both brands simultaneously. Franchisees also participate in local advertising cooperatives in their markets.

Net worth and liquid capital requirements

Hardee's requires prospective franchisees to demonstrate net worth of $1,000,000 or more and liquid capital of $500,000 or more. Multi-unit restaurant experience or food service operational background is strongly preferred — CKE evaluates candidates on operational competency, financial depth, and real estate access in target markets. First-time franchisees are evaluated case-by-case; prior QSR experience improves approval probability.

Financing options

Hardee's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:

SBA 7(a) loan: Covers franchise fee, leasehold improvements, equipment, and working capital. The $5M SBA 7(a) limit accommodates most single-unit Hardee's investments.
SBA 504 loan: Relevant for franchisees pursuing real estate ownership — fixed-asset heavy QSR build-outs align well with 504's structure.
Equipment financing: Commercial kitchen equipment packages — fryers, charbroilers, refrigeration, and smallwares — can be financed separately.
Working capital line of credit: Supports pre-opening expenses and the initial ramp-up period while customer traffic builds.

What lenders look for in a Hardee's franchise application

Hardee's is on the SBA Franchise Directory, enabling expedited eligibility review for SBA-approved lenders. At $1.5M–$3M, this is a high-investment QSR build where deal structure — new construction vs. conversion, leased vs. owned real estate — significantly shapes the financing package. Key factors lenders evaluate:

Debt service coverage ratio (DSCR): SBA guidelines require 1.15× minimum. Lenders typically require 1.25×–1.35× on Hardee's builds due to the investment size and construction ramp period. Pro formas should document Hardee's daypart diversity — breakfast biscuit revenue and lunch/dinner burger revenue are distinct streams that together demonstrate stronger annual DSCR.
Equity injection: SBA minimum is 10% of total project cost. Lenders typically require 20–25% on builds at this range — on a $2.25M midpoint, $450K–$563K in documented borrower equity. Borrowed equity does not qualify under SBA rules.
Net worth and liquid capital: Hardee's thresholds ($1M+ net worth, $500K+ liquid) are consistent with mid-tier QSR brands of this investment size. Lenders verify both on a current personal financial statement.
QSR operations experience: CKE prefers candidates with existing food service operational background. Prior multi-unit experience or documented restaurant management experience significantly improves lender confidence at this investment level.
Breakfast daypart documentation: Hardee's biscuit breakfast is a differentiator — it competes aggressively with other breakfast QSR chains. Lenders who understand this value it; pro formas should quantify breakfast revenue as a percentage of total projected sales based on FDD Item 19 data.

Apply at ClearValue Lending

ClearValue Lending works with QSR franchise operators — including burger concepts at this investment range — on SBA and equipment financing structures. Start at small business financing or apply at Find my match. Your file routes to the funding partners best matched to your file. Use our SBA loan payment calculator to model monthly payments.

Sources

Hardee's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans finance franchise startups including construction, equipment, and working capital for QSR restaurant concepts. — SBA 7(a) Loan Program
Qualifying restaurant equipment placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
All Hardee's franchise cost and fee data derives from the current Franchise Disclosure Document (FDD) filed under the FTC Franchise Rule. — FTC Franchise Rule — Buying a Franchise: A Consumer Guide
The Fed Small Business Credit Survey finds bank loans and SBA-guaranteed financing remain the primary credit sources QSR small employer firms use to fund startup and build-out costs at this investment tier. — Federal Reserve — Small Business Credit Survey

Frequently asked questions

How much does a Hardee's franchise cost in 2026?

Per the current FDD, total estimated initial investment runs $1,500,000–$3,000,000. Full-service QSR construction — kitchen build-out, drive-through infrastructure, and branded interiors — is the primary cost driver.

What is the relationship between Hardee's and Carl's Jr.?

Both Hardee's and Carl's Jr. are operated by CKE Restaurants Holdings and share a common menu and operational platform. Hardee's operates primarily in Eastern and Midwestern US markets; Carl's Jr. is concentrated in the Western US. The dual-brand structure means franchisees benefit from shared product development and marketing infrastructure.

What is the Hardee's royalty rate?

Hardee's charges a 4% royalty on gross sales plus a 5% advertising fund contribution, for a combined 9% of gross sales.

Who owns Hardee's?

Hardee's is owned by CKE Restaurants Holdings, which is in turn owned by private equity firm Roark Capital Group.

Can I finance a Hardee's franchise with an SBA loan?

Yes. Hardee's is on the SBA Franchise Directory. SBA 7(a) covers franchise fee, construction, equipment, and working capital. SBA 504 is an option for franchisees pursuing real estate ownership.

What DSCR do lenders require for a Hardee's franchise SBA loan?

SBA guidelines set a minimum DSCR of 1.15× — the business must generate $1.15 in cash flow for every $1.00 in annual debt service. On Hardee's builds in the $1.5M–$3M range, lenders typically require 1.25×–1.35× to account for construction ramp time and the initial traffic-build period. Hardee's strong breakfast daypart (biscuits + chicken) can be documented separately in the pro forma to demonstrate daypart diversification. Source: SBA SOP 50 10 8 (sba.gov).

How much equity injection do I need for a Hardee's SBA loan?

SBA requires a minimum 10% equity injection of total project cost. On Hardee's builds, lenders typically require 20–25% borrower equity — on a $2.25M midpoint, that's $450K–$563K in documented borrower funds. Equity can come from personal savings or ROBS (retirement account rollover); borrowed equity does not qualify under SBA rules. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.

Summary:

This article is for educational purposes and is not financial, legal, or tax advice. Rates, fees, qualification requirements, and product availability are illustrative ranges that vary by lender, market conditions, and individual business profile. ClearValue Lending is a funding platform; all financing is subject to lender partner approval and terms. Always read your contract end-to-end and verify specific numbers before signing.

https://clearvaluelending.com/franchises/hardees/cost-to-start

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