Regarding non-cash payment systems at Hardees, is a franchisee allowed to use payment service providers that Hardees has not approved in writing?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall accept debit cards, credit cards, stored value gift cards or other non-cash payment systems specified by HR to enable customers to purchase authorized products and shall obtain all necessary hardware and/or software used in connection with these non-cash payment systems. At all times, Franchisee must maintain relationships with all issuers or service providers that HR designates as mandatory, and Franchisee must refrain from using any services or providers that HR has not approved in writing or that HR has revoked its approval. HR may modify its requirements and designate additional approved or required methods of payment and vendor for processing such payment. Franchisee shall reimburse HR for all costs associated with such non-cash payment systems as they pertain to the Franchised Restaurant. In addition to the requirements set forth in Section 13.D. above, Franchisee must also comply with the Fair and Accurate Credit Transactions Act ("FACTA"). Franchisee must comply with all laws and regulations relating to privacy and data protection and must comply with any privacy policies or data protection and breach response policies, or any other policies related to data privacy or data use, that HR periodically may establish. Franchisee must notify HR immediately if it is notified of a credit card or data breach related to the Franchised Restaurant and must fully cooperate with HR and applicable authorities in resolving such breach. Further, Franchisee must cooperate with HR fully regarding media statements and other items related to managing any such event for the purpose of protecting the Proprietary Marks and System as set forth below.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees must adhere to specific guidelines regarding non-cash payment systems. Hardees requires franchisees to accept debit cards, credit cards, stored value gift cards, or other non-cash payment systems that Hardees specifies. To facilitate these transactions, franchisees must acquire all the necessary hardware and software.
Furthermore, franchisees are obligated to maintain relationships with issuers or service providers that Hardees designates as mandatory. Conversely, franchisees are explicitly prohibited from using any services or providers that Hardees has not approved in writing or has revoked its approval. Hardees retains the right to modify these requirements, including designating additional approved or required methods of payment and vendors for processing payments.
Franchisees are responsible for reimbursing Hardees for all costs associated with these non-cash payment systems as they pertain to their franchised restaurant. Additionally, franchisees must comply with the Fair and Accurate Credit Transactions Act (FACTA), as well as all laws and regulations relating to privacy and data protection. This includes adhering to any privacy policies, data protection, and breach response policies that Hardees may establish periodically. Franchisees are required to notify Hardees immediately of any credit card or data breaches related to their restaurant and fully cooperate with Hardees and relevant authorities in resolving such breaches. They must also cooperate with Hardees regarding media statements and other items related to managing any such event to protect the Proprietary Marks and System.
In summary, a Hardees franchisee cannot use non-cash payment service providers that Hardees has not explicitly approved in writing. This policy ensures consistency and security across all Hardees locations and protects the brand's reputation.