What factors might Hardees consider when evaluating a supplier or distributor for approval?
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. These services include negotiating with suppliers and distributors who will sell and
distribute goods to our franchisees, designating one or more distributors to service our franchisees, and managing distribution logistics.
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 is contingent upon several factors. These include the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints), sanitation standards, insurance, and other quality assurance requirements. Hardees may also consider the concentration of purchases. The approval may be temporary, pending further evaluation by Hardees.
If a franchisee proposes a new supplier, they must notify Hardees and submit requested information, specifications, and samples at their own expense. Hardees may charge a fee to cover the cost of inspection and testing. The franchisee may also be charged a deposit of $1,500 against the cost Hardees incurs inspecting the supplier's facility. Hardees will then notify the franchisee within 60 days whether the supplier is approved.
Hardees can require re-testing of a supplier at the franchisee's expense to ensure continued compliance with specifications. Hardees also reserves the right to revoke any approvals in writing. These measures ensure that all suppliers meet Hardees' standards, maintaining consistency and quality across all franchise locations.