What supply chain services do Hardees and its affiliates provide for the franchise system?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
h commissaries and distribution facilities owned and operated by us or an affiliate that we will designate as an approved supplier.
One or more of our officers may own nominal interests in certain of our approved suppliers which are publicly traded companies or through investment funds.
We and our affiliates may receive fees, payments, commissions, field-of-use license royalties or other consideration from approved suppliers based on sales to franchisees, from promotional allowances and volume discounts. We and our affiliates may use all amounts received from approved suppliers, distributors or third parties, whether or not based on your and/or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our affiliates deem appropriate. Finally, we and our affiliates provide supply chain, quality assurance, distribution and logistics services for the franchise system. These services include negotiating with suppliers and distributors who will sell and
distribute goods to our franchisees, designating one or more distributors to service our franchisees, and managing distribution logistics. As a result, we and our affiliates reserve the right 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 already approved), and may be temporary pending further evaluation of such supplier. We may periodically require that the testing be performed again at your expense to ensure that the supplier continues to meet our specifications. We will advise you in writing if we revoke any approvals.
You also must obtain and install data processing equipment, computer hardware, required dedicated telephone and power lines, high speed internet connections, modems, printers and software and other computer related accessory or peripheral equipment as we periodically may specify in the OPM or otherwise in writing ("Computer/POS System"), as further explained in Item 11. Current approved vendors for technology components of the Computer/POS System are PAR Tech, Inc, CrunchTime, QSR Automations, Xenial Xpient (5.0 higher) and Meraki.
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, Hardees and its affiliates provide supply chain, quality assurance, distribution, and logistics services for the franchise system. These services encompass negotiating with suppliers and distributors for goods sold to franchisees, designating distributors to service franchisees, and managing distribution logistics. Hardees and its affiliates reserve the right to recover costs for these services by collecting a per-case distribution fee for all cases sold by approved suppliers to franchisees and from other logistics-related programs.
Hardees maintains standards and specifications for ingredients, food products, materials, supplies, furniture, fixtures, equipment, and other items, detailed in the Operation Procedures Manual (OPM). Franchisees must purchase most food items and other goods from a master distributor, which, as of the FDD date, is McLane Company, Inc., though Hardees reserves the right to change master distributors. Hardees may approve one or more suppliers or distributors for any products, equipment, goods, or materials, potentially concentrating purchases with specific suppliers to secure lower prices, advertising support, or services.
Approximately 90% of a franchisee's purchases or leases of fixtures, furnishings, equipment, décor, signs, food items, ingredients, supplies, and other products must adhere to Hardees's specifications or be from approved suppliers. Hardees estimates these items represent about 65% of a franchisee's controllable purchases, excluding labor and general administrative costs. Franchisees are also required to participate in online ordering/delivery and loyalty programs established by Hardees with approved vendors, complying with the applicable rules and criteria. Hardees negotiates system-wide contracts with suppliers, allowing franchisees to purchase products at negotiated prices and terms, though Hardees reserves the right to limit the number of suppliers delivering at those prices and terms.