Can Hardees approve a supplier or distributor only as to certain goods or materials?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
We may approve one or more suppliers or distributors for any products, equipment (including computer/cash register system as noted below), goods or materials, and we may approve a supplier or distributor only as to certain goods or materials. We may concentrate purchases with one or more suppliers to obtain lower prices and/or the best advertising support and/or services for any group of Hardee's Restaurants, or any other group of restaurants operated or franchised by HR or its affiliates. Although you are not required to lease a location from us or an affiliate, we must consent to your selection of the site for your Hardee's Restaurant. If you lease the Restaurant premises from a third party landlord, you must sign the Franchise Lease Addendum attached as Appendix G to the Franchise Agreement.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 39–42)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees has the authority to approve suppliers or distributors for specific goods or materials only. This means Hardees can limit a supplier's approval to certain items rather than approving them for all products.
This policy allows Hardees to maintain tight control over the quality and consistency of its products. It also enables Hardees to concentrate purchases with specific suppliers to potentially secure lower prices, better advertising support, or superior services for Hardees restaurants. For a franchisee, this means they may not have the freedom to choose their own suppliers for all goods; they must adhere to Hardees's approved list and any specific limitations on those approvals.
If a franchisee wishes to use a non-approved supplier, they must notify Hardees and submit the required information, specifications, and samples for testing, at the franchisee's expense. Hardees or a designated independent testing laboratory may charge a fee for the inspection and testing. Hardees will then notify the franchisee within 60 days whether the supplier is approved. A deposit of $1,500 is required to cover inspection costs, with the franchisee responsible for any additional expenses. This approval may also be subject to conditions such as delivery frequency, reporting capabilities, and service standards, and may be temporary pending further evaluation.
Hardees can also negotiate system-wide contracts with suppliers, allowing franchisees to purchase products at negotiated prices and terms. However, Hardees reserves the right to limit the number of suppliers who can deliver products at those prices. For equipment, smallwares, and supplies, franchisees must purchase from Hardees's third-party vendor, Wasserstrom Holdings, Inc. and its subsidiaries, to obtain the negotiated price and be eligible for revenue-sharing incentives. Approximately 90% of purchases or leases of fixtures, furnishings, equipment, décor, signs, food items, ingredients, supplies, and other products must be purchased according to Hardees's specifications or from approved suppliers, representing about 65% of controllable purchases, excluding labor and administrative costs.