Who bears the expense for all hardware and software specified to be installed or purchased, or activities the Hardees franchisee is to accomplish, and the delivery cost of all hardware and software?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ary materials at then-current prices whenever adopted system-wide by HR; (5) comply with Point to Point Credit Encryption Standards ("P2PE") and the
Payment Card Industry Data Security Standard ("PCI DSS") at all times, and if necessary to maintain such compliance, upgrade its technology, at Franchisee's expense; and (6) engage any vendor that HR designates to ensure the security of Franchisee's data and compliance with P2PE and PCI DSS. Franchisee must maintain continuous compliance and attest annually by providing a completed and signed PCI Attestation of Compliance (AOC) to HR.
Franchisee acknowledges that computer systems are designed to accommodate a finite amount of data and terminals, and that, as these limits are reached, or as technology or software is developed in the future, HR may, in its sole discretion, mandate that Franchisee: (A) add memory, ports and other accessories or peripheral equipment or additional, new or substitute software to the original computer system purchased by Franchisee; and (B) replace or upgrade the entire computer system with a larger system capable of assuming and discharging the computer-related tasks and functions specified by HR. Franchisee also acknowledges that computer designs and functions change periodically and that HR may desire to make substantial modifications to its computer specifications or to require installation of entirely different systems during the term of this Agreement or upon renewal of this Agreement.
To ensure full operational efficiency and communication capability between HR's computers and those of all Hardee's Restaurants, Franchisee agrees, at its expense, to keep its computer system in good maintenance and repair and to make additions, changes, modifications, substitutions and replacements to its computer hardware, software, telephone and power lines and other computer-related facilities as directed by HR, and on the dates and within the times specified by HR in its sole discretion. Upon termination or expiration of this Agreement, all computer software, disks, tapes and other magnetic storage media shall be returned to HR in good operating condition, excepting normal wear and tear.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the franchisee is generally responsible for the costs associated with hardware, software, and related activities. Specifically, the franchisee must maintain its computer system and make necessary updates or replacements as directed by Hardees, all at the franchisee's expense. This includes keeping the system in good repair and making any additions, changes, modifications, substitutions, and replacements to computer hardware, software, telephone and power lines, and other computer-related facilities as directed by Hardees.
This also extends to compliance with data security standards. The franchisee is responsible for upgrading technology at their own expense to maintain compliance with Point to Point Credit Encryption Standards (P2PE) and the Payment Card Industry Data Security Standard (PCI DSS). Additionally, the franchisee must engage any vendor that Hardees designates to ensure data security and compliance with these standards.
Furthermore, the franchisee is responsible for purchasing new or upgraded software programs, system documentation manuals, and other proprietary materials at then-current prices whenever adopted system-wide by Hardees. The franchisee must also purchase equipment and related services, such as a computer system, Internet service, and dedicated phone line, necessary to receive communications from Hardees, including updates to the OPM (Operations Procedures Manual). These stipulations ensure that all Hardees locations maintain consistent technology and operational standards, but place the financial burden of these requirements on the franchisee.