What conditions might Hardees place on the approval of a supplier or distributor?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
quired 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.
Approval of a supplier or a distributor may be conditioned on requirements relating to the frequency of delivery, reporting capabilities, standards of service, including prompt attention to complaints, sanitation standards, insurance and other quality assurance requirements or other criteria, and concentration of purchases, as set forth above, and it may be temporary pending a further evaluation of the supplier by us. A fee not to exceed our actual costs of reviewing the supplier or distributor and auditing the supplier's facility, if needed, may be charged by us and must be paid by you. We may establish commissaries and distribution facilities owned and operated by us or an affiliate that we will designate as an approved supplier.
One or more of our officers may own nominal interests in certain of our approved suppliers which are publicly traded companies or through investment funds.
We and our affiliates may receive fees, payments, commissions, field-of-use license royalties or other consideration from approved suppliers based on sales to franchisees, from promotional allowances and volume discounts. We and our affiliates may use all amounts received from approved suppliers, distributors or third parties, whether or not based on your and/or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our affiliates deem appropriate. Finally, we and our affiliates provide supply chain, quality assurance, distribution and logistics services for the franchise system.
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, the approval of a supplier or distributor may be subject to certain conditions. These conditions can include requirements related to the frequency of delivery, reporting capabilities, and standards of service, ensuring prompt attention to complaints. Hardees also considers sanitation standards, insurance coverage, and other quality assurance requirements. The approval may also hinge on the concentration of purchases. Furthermore, the approval could be temporary, pending a more thorough evaluation of the supplier by Hardees.
Hardees may charge a fee to cover the costs of reviewing the supplier or distributor, including auditing the supplier's facility if necessary. This fee is not to exceed Hardees' actual costs and must be paid by the franchisee. If a franchisee proposes a new supplier, they must notify Hardees and submit requested information, specifications, and samples at their own expense. Hardees or a designated independent testing laboratory may charge a fee for inspection and testing, with the franchisee responsible for payment. A deposit of $1,500 is required for facility inspection if tentative approval is granted.
These conditions ensure that suppliers and distributors meet Hardees' standards for quality, service, and operational efficiency. By imposing these requirements, Hardees aims to maintain consistency and protect its brand reputation. Franchisees should be aware of these potential costs and requirements when considering alternative suppliers and distributors.