If a Hardees franchisee proposes to purchase goods from a non-approved supplier, what actions can Hardees take?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ht to recover our costs related to performing these services by collecting a per-case distribution fee for all cases sold by an approved supplier to our franchisees and from other logistics-related programs.
We may charge non-approved suppliers reasonable testing and/or inspection fees.
If you propose to purchase any goods or materials from a supplier that we have not previously approved, you must notify us and submit to us or a designated independent testing laboratory, at your expense, the information, specifications and samples as we reasonably request. A fee not to exceed the reasonable cost of the inspection and the actual cost of the test may be charged by us or by an independent testing laboratory designated by us and must be paid for by you. We will notify you within 60 days as to whether you are authorized to purchase these products from that supplier. In the event we tentatively approve a request for an alternative supplier, you must submit a check for $1,500 to us as a deposit against the cost we incur in inspecting the supplier's facility. You will be responsible for additional costs and expenses associated with the inspection of the facility, which must occur before final approval. Approval of a supplier also may be subject to the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints) or other criteria (including the number of suppliers
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, if a franchisee wants to purchase goods or materials from a supplier not already approved by Hardees, the franchisee must first notify Hardees. The franchisee is then responsible for submitting any information, specifications, and samples that Hardees reasonably requests to either Hardees or an independent testing laboratory. The franchisee bears the expense of providing this information and testing. Hardees, or the designated independent lab, may charge a fee to cover the cost of the inspection and testing.
Hardees will then notify the franchisee within 60 days whether they are authorized to purchase from the proposed supplier. If Hardees tentatively approves the supplier, the franchisee must submit a $1,500 deposit to cover the costs Hardees will incur to inspect the supplier's facility. The franchisee is responsible for any additional costs associated with this inspection, which must occur before final approval is granted.
Approval of a supplier may also depend on factors such as delivery frequency, reporting capabilities, service standards (including how quickly complaints are addressed), and the number of suppliers already approved. Approvals may be temporary while Hardees further evaluates the supplier. Hardees may also require the franchisee to repeat the testing process periodically, at the franchisee's expense, to ensure the supplier continues to meet Hardees' specifications. Finally, Hardees will provide written notice if they decide to revoke any previously granted approvals.