What is the franchisee's obligation regarding the operation of the Hardees Franchised Restaurant in relation to the System Standards?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
lly prescribed by HR and shall participate and/or request its customers to participate in any surveys performed by or on behalf of HR as HR may direct. Franchisee will reimburse HR for all costs related to the Franchised Restaurant associated with any and all of these inspections and related activities set forth above.
E. Delegation
HR has the right, from time to time, to delegate the performance of any portion or all of its obligations and duties under this Agreement to designees, including, but not limited to, HR's corporate parents, affiliates or agents or independent contractors with which HR has contracted to perform HR's obligations or duties.
13. PERFORMANCE STANDARDS AND UNIFORMITY OF OPERATION
Products sold and services performed under the Proprietary Marks have a reputation for quality. This reputation has been developed and maintained by HR, and it is of the utmost importance to HR, Franchisee and all other franchisees of HR that this reputation be maintained. In recognition of the mutual benefits that come from maintaining the reputation for quality enjoyed by the System, Franchisee covenants and agrees, with respect to the operation of the Franchised Restaurant, that Franchisee and its employees shall comply with all of the requirements of the System as set forth in the OPM or otherwise, and Franchisee additionally shall comply with the following:
A. Standards, Specifications and Procedures
Franchisee acknowledges that each and every detail of the appearance, layout, decor, services and operation of the Franchised Restaurant is important to HR and other Hardee's Restaurants. Franchisee agrees to cooperate with HR by maintaining these high standards in the operation of the Franchised Restaurant. Franchisee further agrees to comply with all System specifications, recipes, standards and operating procedures (whether contained in the OPM or any other written communication to Franchisee) relating to the interior and exterior appearance, function, cleanliness and operation of a Hardee's Restaurant, including, but not limited to: (1) type, quality, taste, weight, dimensions, ingredients, uniformity, manner of preparation, and sale of all food products and beverages sold at the Franchised Restaurant and all other products used in the packaging and sale of those products and beverages; (2) sales and marketing procedures and customer service; (3) advertising and promotional programs; (4) layout, decor and color scheme of the Franchised Restaurant; (5) appearance and dress of employees; (6) safety, maintenance, appearance, cleanliness, sanitation, standards of service, and operation of the Franchised Restaurant; (7) submission of requests for approval of brands of products, supplies and suppliers; (8) use and illumination of signs, posters, displays, standard formats and similar items; (9) identification of Franchisee as the owner of the Franchised Restaurant; (10) types of fixtures, furnishings, equipment, smallwares and packaging; and (11) the make, type, location and decibel level of any game, entertainment or vending machine. Mandatory specifications, brand standards and operating procedures, including upgraded or additional equipment, that HR prescribes from time to time in the OPM, or otherwise communicates to Franchisee in writing, shall constitute provisions of this Agreement as if fully set forth in this Agreement.
B. Approved Products, Distributors and Suppliers
Franchisee acknowledges that the reputation and goodwill of Hardee's Restaurants are based upon, and can only be maintained by, the sale of distinctive, high quality food products and beverages, and the presentation, packaging and service of such products and beverages in an efficient and appealing manner. HR may develop certain proprietary food products that will be prepared by or for HR according to HR's proprietary special recipes and formulas. HR also has developed standards and specifications for other food products, ingredients, seasonings, mixes, beverages, materials and supplies incorporated or used in the preparation, cooking, serving, packaging and delivery of prepared food products authorized for sale at Hardee's Restaurants. Franchisee agrees that the Franchised Restaurant will: (1) purchase those food
products developed by HR pursuant to a special recipe or formula only from HR, an affiliate of HR or a third party designated and licensed by HR to prepare and sell such products; and (2) purchase from manufacturers, distributors, vendors and suppliers (collectively "suppliers") approved by HR all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials, supplies and cleaning products used in the preparation of products and cleanliness of the Franchised Restaurant (collectively "goods"), as well as advertising materials, furniture, fixtures, equipment, smallwares, menus, forms, paper and plastic products, packaging or other materials (collectively "materials") that meet the standards and specifications promulgated by HR from time to time. HR has the right to require that Franchisee use only certain brands and to prohibit Franchisee from using other brands. HR may from time to time modify the list of approved brands and/or suppliers, and Franchisee shall not, after receipt of such modification in writing, reorder any brand from any supplier that is no longer approved.
HR may approve one or more suppliers for any goods or materials and may approve a supplier only as to certain goods or materials. HR may concentrate purchases with one or more suppliers to obtain lower prices and/or the best advertising support and/or services for any group of Hardee's Restaurants or any other group of restaurants franchised or operated by HR or its affiliates. Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, reporting capabilities, standards of service, including prompt attention to complaints, or other criteria, and concentration of purchases, as set forth above, and may be temporary pending a further evaluation of such supplier by HR.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees must operate their restaurants in strict compliance with the System Standards. These standards encompass every detail of the restaurant's appearance, layout, decor, services, and overall operation, all of which are deemed crucial to Hardees and its other franchisees. Franchisees are expected to maintain high standards and cooperate with Hardees to uphold these standards.
The System Standards include specifications, recipes, and operating procedures detailed in the Operation Procedures Manual (OPM) or other written communications. These cover a wide array of aspects such as the quality and preparation of food and beverages, sales and marketing procedures, customer service, restaurant layout and decor, employee appearance, cleanliness, sanitation, and maintenance. Franchisees must also adhere to guidelines for signage, product and supplier approvals, and the types of fixtures and equipment used. Hardees retains the right to modify these standards, and franchisees are obligated to comply with any updates communicated in writing.
Furthermore, franchisees must continuously maintain and operate the restaurant, ensuring all elements such as furniture, fixtures, signage, and landscaping are in first-class condition and repair. This includes performing necessary remodeling, redecorating, and repairs as directed by Hardees, such as periodic painting, parking lot resurfacing, and replacement of outdated items. The franchisee is also expected to operate the Franchised Restaurant at its maximum capacity and efficiency for the minimum number of days and hours set forth in the OPM or as Hardees otherwise prescribes in writing, while also adhering to local laws and licensing requirements.
Hardees retains the right to inspect the restaurant at any reasonable time, without prior notice, to ensure compliance with the franchise agreement and System Standards. Franchisees are expected to cooperate fully with these inspections and immediately correct any deficiencies. Failure to comply with System Standards can impact the franchisee's ability to renew their franchise agreement. Hardees will assess whether the franchisee has operated the restaurant in accordance with the agreement and System Standards when considering renewal.