If a Hardees franchisee subcontracts the processing of Consumer Information, what requirements must be included in the written agreement with the subcontractor?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee shall not allow any person or entity (other than Franchisee's direct employees) to process Consumer Information without the express prior approval of HR, and any such subcontracting shall be performed strictly in accordance with a written agreement that imposes obligations on such subcontractor that are at least as restrictive as those imposed on Franchisee under this Agreement.
Franchisee shall be liable for the acts and omissions of all such subcontractors to the same extent Franchisee would be liable if performing the services of each subcontractor directly under the Agreement;
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a franchisee must obtain express prior approval from Hardees before allowing any person or entity (other than the franchisee's direct employees) to process Consumer Information. If Hardees approves the use of a subcontractor, the franchisee must have a written agreement with the subcontractor.
The written agreement between the Hardees franchisee and the subcontractor must impose obligations on the subcontractor that are at least as restrictive as those imposed on the franchisee under the franchise agreement. This ensures that the subcontractor adheres to the same standards of consumer information protection as the franchisee.
The Hardees franchisee is liable for the acts and omissions of all subcontractors to the same extent as if the franchisee were performing the services directly under the agreement. This means that the franchisee bears the responsibility for ensuring that subcontractors comply with the terms of the agreement and applicable privacy laws.