Can Hardees establish commissaries and distribution facilities as approved suppliers?

According to Hardees's 2025 Franchise Disclosure Document, Hardees has the right to establish its own commissaries and distribution facilities. Specifically, Hardees or an affiliate can own and operate these facilities and designate them as approved suppliers for the franchise system.

This means that Hardees franchisees may be required to purchase goods and supplies from these company-owned distribution centers. While this could potentially streamline the supply chain and ensure consistent product quality, it also limits the franchisee's ability to choose their own suppliers or negotiate for better prices.

It is important for prospective Hardees franchisees to understand that Hardees can profit from these distribution facilities through the sale of goods to franchisees. While the FDD does not specify how these facilities will be managed or what pricing structures will be in place, it's crucial for franchisees to evaluate the potential impact on their operating costs and profitability. Franchisees should inquire about the pricing and service levels of these company-owned facilities compared to other potential suppliers to make an informed decision.