If Hardees reasonably determines that a franchisee is unable to meet their obligations, what actions can Hardees demand from the franchisee, and what is the deadline for the franchisee to comply?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately resolve any customer complaints regarding the quality of food or beverages, service and/or cleanliness of the Franchised Restaurant or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use best efforts to resolve the customer complaints as soon as practical and shall, whenever feasible, give the customer the benefit of the doubt. If HR, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System, or if HR, in its sole discretion, believes that Franchisee has failed adequately to address or resolve any customer complaints, HR may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover HR's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay HR immediately on demand.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Based on the 2025 Hardees Franchise Disclosure Document, if Hardees determines that its intervention is necessary to protect the Hardees system or its goodwill, or if Hardees believes a franchisee has failed to adequately address customer complaints, Hardees may resolve these complaints without the franchisee's consent. The franchisee will then be charged an amount sufficient to cover Hardees' reasonable costs and expenses in resolving the complaints.
The franchisee is required to pay this amount to Hardees immediately upon demand. This means that Hardees has the authority to step in and manage customer service issues if they deem it necessary, and the franchisee is responsible for covering the associated costs. This could include costs related to labor, materials, or any other expenses incurred by Hardees in resolving the complaints.
This clause highlights the importance of maintaining high standards of customer service and operational efficiency at a Hardees franchise. Franchisees should ensure they have robust systems in place to handle customer complaints effectively and maintain the quality of their restaurant to avoid intervention from Hardees and the associated financial burden.