With whom must a Hardee's franchisee enter into a Participation Agreement regarding the gift card program, and when must this agreement be completed?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must participate in the Hardee's Gift Card Program or other gift card program that HR specifies. If necessary, Franchisee must purchase the software, hardware, blank cards, and other items needed to sell and process gift cards or stored value cards, which HR may specify in writing in the OPM or otherwise. Franchisee must sell and honor gift cards only in accordance with HR's written standards. Franchisee must account for all gift card sales, gift card redemptions, and other gift card transactions in the manner HR specifies in this Agreement and the OPM or other standards. Franchisee agrees that it will enter into a Participation Agreement with HR's gift card service provider, Stored Value Systems, Inc., immediately after the opening of the Franchised Restaurant.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardee's 2025 Franchise Disclosure Document, a franchisee must participate in the Hardee's Gift Card Program. To do so, the franchisee must enter into a Participation Agreement with Hardee's gift card service provider, Stored Value Systems, Inc. This agreement must be completed immediately after the opening of the franchised restaurant.
This requirement ensures that all Hardee's restaurants participate in the gift card program, maintaining uniformity and brand consistency across all locations. It also allows for centralized management of gift card transactions, which can help with accounting and fraud prevention.
For a prospective franchisee, this means that they need to be prepared to implement the gift card program as soon as their restaurant opens. This includes purchasing any necessary software, hardware, and blank cards, as specified by Hardee's. Additionally, they must adhere to Hardee's written standards for selling and honoring gift cards and accurately account for all gift card transactions.