factual

Which sections of the Hardees Franchise Agreement address compliance with standards and policies, as well as the Operating Manual?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

E. Delegation

HR has the right, from time to time, to delegate the performance of any portion or all of its obligations and duties under this Agreement to designees, including, but not limited to, HR's corporate parents, affiliates or agents or independent contractors with which HR has contracted to perform HR's obligations or duties.

13. PERFORMANCE STANDARDS AND UNIFORMITY OF OPERATION

Products sold and services performed under the Proprietary Marks have a reputation for quality. This reputation has been developed and maintained by HR, and it is of the utmost importance to HR, Franchisee and all other franchisees of HR that this reputation be maintained. In recognition of the mutual benefits that come from maintaining the reputation for quality enjoyed by the System, Franchisee covenants and agrees, with respect to the operation of the Franchised Restaurant, that Franchisee and its employees shall comply with all of the requirements of the System as set forth in the OPM or otherwise, and Franchisee additionally shall comply with the following:

A. Standards, Specifications and Procedures

Franchisee acknowledges that each and every detail of the appearance, layout, decor, services and operation of the Franchised Restaurant is important to HR and other Hardee's Restaurants. Franchisee agrees to cooperate with HR by maintaining these high standards in the operation of the Franchised Restaurant. Franchisee further agrees to comply with all System specifications, recipes, standards and operating procedures (whether contained in the OPM or any other written communication to Franchisee) relating to the interior and exterior appearance, function, cleanliness and operation of a Hardee's Restaurant, including, but not limited to: (1) type, quality, taste, weight, dimensions, ingredients, uniformity, manner of preparation, and sale of all food products and beverages sold at the Franchised Restaurant and all other products used in the packaging and sale of those products and beverages; (2) sales and marketing procedures and customer service; (3) advertising and promotional programs; (4) layout, decor and color scheme of the Franchised Restaurant; (5) appearance and dress of employees; (6) safety, maintenance, appearance, cleanliness, sanitation, standards of service, and operation of the Franchised Restaurant; (7) submission of requests for approval of brands of products, supplies and suppliers; (8) use and illumination of signs, posters, displays, standard formats and similar items; (9) identification of Franchisee as the owner of the Franchised Restaurant; (10) types of fixtures, furnishings, equipment, smallwares and packaging; and (11) the make, type, location and decibel level of any game, entertainment or vending machine. Mandatory specifications, brand standards and operating procedures, including upgraded or additional equipment, that HR prescribes from time to time in the OPM, or otherwise communicates to Franchisee in writing, shall constitute provisions of this Agreement as if fully set forth in this Agreement.

B. Approved Products, Distributors and Suppliers

Franchisee acknowledges that the reputation and goodwill of Hardee's Restaurants are based upon, and can only be maintained by, the sale of distinctive, high quality food products and beverages, and the presentation, packaging and service of such products and beverages in an efficient and appealing manner. HR may develop certain proprietary food products that will be prepared by or for HR according to HR's proprietary special recipes and formulas. HR also has developed standards and specifications for other food products, ingredients, seasonings, mixes, beverages, materials and supplies incorporated or used in the preparation, cooking, serving, packaging and delivery of prepared food products authorized for sale at Hardee's Restaurants. Franchisee agrees that the Franchised Restaurant will: (1) purchase those food

products developed by HR pursuant to a special recipe or formula only from HR, an affiliate of HR or a third party designated and licensed by HR to prepare and sell such products; and (2) purchase from manufacturers, distributors, vendors and suppliers (collectively "suppliers") approved by HR all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials, supplies and cleaning products used in the preparation of products and cleanliness of the Franchised Restaurant (collectively "goods"), as well as advertising materials, furniture, fixtures, equipment, smallwares, menus, forms, paper and plastic products, packaging or other materials (collectively "materials") that meet the standards and specifications promulgated by HR from time to time. HR has the right to require that Franchisee use only certain brands and to prohibit Franchisee from using other brands.

Source: Item 9 — Franchisee's Obligations (FDD pages 42–43)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, several sections of the franchise agreement outline the franchisee's responsibilities regarding compliance with brand standards, specifications, and the Operating Procedures Manual (OPM). Section A, titled "Standards, Specifications and Procedures," emphasizes the importance of maintaining high standards in every aspect of the restaurant's operation. It requires franchisees to comply with all system specifications, recipes, standards, and operating procedures detailed in the OPM or any other written communication from Hardees. These standards cover a wide range of areas, including food preparation, customer service, restaurant layout, employee appearance, and cleanliness.

Section D, "HR's Right to Inspect the Franchised Restaurant," grants Hardees the authority to inspect the franchised location at any reasonable time, without prior notice, to ensure compliance with the franchise agreement and all prescribed standards. This includes the right to observe operations, remove samples for testing, interview personnel and customers, and inspect records. Franchisees are obligated to cooperate fully with these inspections and promptly correct any deficiencies detected.

Section F in the recitals, further emphasizes the franchisee's understanding and acknowledgement of the importance of Hardees's high and uniform standards of quality, operations, and service. It highlights the necessity of operating the Franchised Restaurant in strict conformity with the Franchise Agreement, the Development Guide, and the Operation Procedures Manual ("OPM"). These sections collectively ensure that Hardees franchisees adhere to the brand's established standards and procedures, maintaining consistency and quality across all locations.

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.