Under what conditions can Hardees concentrate purchases with one or more suppliers?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR may approve one or more suppliers for any goods or materials and may approve a supplier only as to certain goods or materials. HR may concentrate purchases with one or more suppliers to obtain lower prices and/or the best advertising support and/or services for any group of Hardee's Restaurants or any other group of restaurants franchised or operated by HR or its affiliates. Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, reporting capabilities, standards of service, including prompt attention to complaints, or other criteria, and concentration of purchases, as set forth above, and may be temporary pending a further evaluation of such supplier by HR. HR may establish commissaries and distribution facilities owned and operated by HR or an affiliate that HR shall designate as an approved supplier.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardees Restaurants LLC (HR) has the authority to concentrate purchases with specific suppliers under certain conditions. HR may choose to concentrate purchases with one or more suppliers to secure lower prices, obtain the best advertising support, and/or services for any group of Hardee's Restaurants. This also applies to any other group of restaurants franchised or operated by HR or its affiliates.
Approval of a supplier by Hardees may be contingent on various requirements. These include the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints), or other criteria. Approval may also be temporary, pending further evaluation of the supplier by HR. Hardees retains the right to establish commissaries and distribution facilities, owned and operated by HR or an affiliate, which HR can designate as an approved supplier.
For a prospective Hardees franchisee, this means that while you may be required to purchase certain goods and materials from approved suppliers, Hardees may consolidate purchasing to leverage better deals and support services. However, Hardees also maintains strict control over supplier approvals and can impose specific requirements on those suppliers, ensuring quality and consistency across the Hardees system. Franchisees need to adhere to these approved suppliers and standards to maintain the reputation and goodwill of the Hardees brand.