Is a Hardees franchisee required to reimburse HR for costs associated with customer satisfaction programs related to their franchised restaurant?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Hardee's Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as HR may require. HR will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse HR for all costs related to the Franchised Restaurant associated with any and all of these programs.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees are required to reimburse HR (presumably Hardees Restaurants Inc.) for costs associated with customer satisfaction programs related to their franchised restaurant. Hardees implements programs to verify customer satisfaction and franchisee compliance with operational aspects of the system. These programs may include secret shoppers, customer surveys, or other Quality Assurance (QA) initiatives.
The results of these programs, as they pertain to the franchised restaurant, will be shared with the franchisee. The franchisee is then responsible for reimbursing Hardees for all costs related to their restaurant associated with these programs. This reimbursement covers all expenses Hardees incurs to maintain brand standards and customer satisfaction across all franchise locations.
This requirement means that prospective Hardees franchisees should budget for these ongoing customer satisfaction program costs. The exact amount will likely vary depending on the scope and frequency of the programs implemented by Hardees and the size/performance of the specific franchise location. It is important for potential franchisees to inquire about the typical costs associated with these programs to accurately forecast their operating expenses.