Does Hardees require franchisees to pay for the review of a proposed supplier?
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, franchisees may be responsible for covering the costs associated with the review and testing of potential new suppliers. If a franchisee wishes to source goods or materials from a supplier not already approved by Hardees, they must first notify Hardees and provide all requested information, specifications, and samples to Hardees or an independent testing laboratory. The franchisee is responsible for the expenses associated with submitting these materials for review.
Hardees may charge a fee to cover the inspection and testing costs, or an independent lab may directly charge the franchisee. If Hardees tentatively approves an alternative supplier, the franchisee must submit a $1,500 deposit to cover the costs Hardees incurs while inspecting the supplier's facility. The franchisee will be responsible for any additional costs associated with the facility inspection, which must occur before final approval.
Hardees will notify the franchisee within 60 days whether the franchisee is authorized to purchase from the proposed supplier. Even after initial approval, Hardees may periodically require the franchisee to pay for repeat testing to ensure the supplier continues to meet Hardees' specifications. Hardees will provide written notice if any supplier approvals are revoked. This process ensures that all suppliers meet Hardees' standards, but it places the financial burden of supplier verification on the franchisee.