May Hardees charge testing fees to non-approved suppliers?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
aging distribution logistics. As a result, we and our affiliates reserve the right to recover our costs related to performing these services by collecting a per-case distribution fee for all cases sold by an approved supplier to our franchisees and from other logistics-related programs.
We may charge non-approved suppliers reasonable testing and/or inspection fees.
If you propose to purchase any goods or materials from a supplier that we have not previously approved, you must notify us and submit to us or a designated independent testing laboratory, at your expense, the information, specifications and samples as we reasonably request. A fee not to exceed the reasonable cost of the inspection and the actual cost of the test may be charged by us or by an independent testing laboratory designated by us and must be paid for by you. We will notify you within 60 days as to whether you are authorized to purchase these products from that supplier. In the event we tentatively approve a request for an alternative supplier, you must submit a check for $1,500 to us as a deposit against the cost we incur in inspecting the supplier's facility. You will be responsible for additional costs and expenses associated with the inspection of the facility, which must occur before final approval. Approval of a supplier also may be subject to the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints) or other criteria (including the number of suppliers
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 right to charge reasonable testing and/or inspection fees to non-approved suppliers. If a franchisee proposes a new supplier, they must notify Hardees and submit the required information, specifications, and samples for testing at their own expense.
Hardees, or a designated independent testing laboratory, may charge a fee not exceeding the reasonable cost of inspection and the actual cost of the test, which the franchisee must pay. Hardees will then notify the franchisee within 60 days whether the supplier is approved. If Hardees tentatively approves a supplier, the franchisee must submit a $1,500 deposit to cover inspection costs, with the franchisee responsible for any additional expenses related to the facility inspection, which must occur before final approval.
The approval of a supplier may also depend on factors such as delivery frequency, reporting capabilities, service standards, and the number of existing approved suppliers. Hardees may also require periodic retesting at the franchisee's expense to ensure continued compliance with specifications and will provide written notice if any approvals are revoked.
This policy ensures that all suppliers meet Hardees' standards, but it also places the financial burden of testing and inspection on the franchisee, which could add to their operating costs when seeking alternative suppliers.