factual

Can Hardees inspect my restaurant at any time, or are there restrictions?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

To determine whether Franchisee and the Franchised Restaurant are in compliance with this Agreement and with all specifications, quality standards operating procedures and brand standards prescribed by HR for the operation of Hardee's Restaurants, HR or its designees shall have the right at any reasonable time and without prior notice to Franchisee to: (1) inspect the Franchised Location; (2) observe, photograph and videotape the operations of the Franchised Restaurant for such consecutive or intermittent periods as HR deems necessary; (3) remove samples of any food and beverage product, material or other products for testing and analysis (without paying for the samples); (4) interview personnel of the Franchised Restaurant; (5) interview customers of the Franchised Restaurant; and (6) inspect and copy any books, records and documents, including any electronic records, relating to the operation of the Franchised Restaurant or, upon the request of HR or its designee, require Franchisee to send copies thereof to HR or its designee. Franchisee agrees to cooperate fully with HR or its designee in connection with any such inspections, observations, videotaping, product removal and interviews. Franchisee shall take all necessary steps to immediately correct any deficiencies detected during these inspections, including, without limitation, ceasing further sale of unauthorized menu items, correcting any critical food safety issues, correcting any identified deficiencies that adversely impact guest safety or the ability to operate the restaurant in conformance with OPM procedures or brand standards, and ceasing further use of any equipment, advertising materials or supplies that do not conform with the standards and requirements promulgated by HR from time to time. If HR deems such deficiencies to create an imminent health hazard to Franchisee's customers, it may direct Franchisee to temporarily close the Franchised Restaurant until all hazards are corrected to HR's satisfaction pursuant to HR's Closure Policy, as amended from time to time. Franchisee shall present to its customers such evaluation forms as are periodically 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.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, Hardees has the right to inspect a franchised restaurant at any reasonable time and without prior notice to the franchisee. This is to ensure that the franchisee and the restaurant are complying with the franchise agreement, as well as Hardees's specifications, quality standards, operating procedures, and brand standards.

During these inspections, Hardees or its representatives can inspect the location, observe operations (including photographing and videotaping), remove samples for testing (without payment), interview personnel and customers, and inspect/copy records related to the restaurant's operation. The franchisee is required to cooperate fully with these inspections.

If any deficiencies are found during the inspection, the franchisee must take immediate steps to correct them. This includes ceasing the sale of unauthorized menu items, correcting food safety issues, addressing deficiencies impacting guest safety or operational conformance, and stopping the use of non-conforming equipment or supplies. In cases where Hardees believes there is an imminent health hazard, they can direct the franchisee to temporarily close the restaurant until the issues are resolved to Hardees's satisfaction. The franchisee is also responsible for presenting customer evaluation forms and participating in surveys as directed by Hardees. Furthermore, the franchisee will reimburse Hardees for all costs related to these inspections and related activities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.