Under what conditions can Hardees (HR) intervene to resolve customer complaints at a Hardees franchise, and what financial responsibility does the franchisee have in such cases?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately resolve any customer complaints regarding the quality of food or beverages, service and/or cleanliness of the Franchised Restaurant or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use best efforts to resolve the customer complaints as soon as practical and shall, whenever feasible, give the customer the benefit of the doubt. If HR, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System, or if HR, in its sole discretion, believes that Franchisee has failed adequately to address or resolve any customer complaints, HR may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover HR's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay HR immediately on demand.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a Hardees franchisee is expected to immediately resolve customer complaints regarding food quality, service, cleanliness, or similar issues. If a customer complaint cannot be immediately resolved, the franchisee must use their best efforts to resolve it as soon as practical, giving the customer the benefit of the doubt whenever feasible. This reflects the typical franchise practice of prioritizing customer satisfaction at the local level.
Hardees, however, reserves the right to intervene in customer complaints under specific circumstances. If Hardees determines, in its sole discretion, that its intervention is necessary or desirable to protect the Hardees system or the goodwill associated with it, or if Hardees believes that the franchisee has failed to adequately address or resolve any customer complaints, Hardees may step in to resolve the complaints without the franchisee's consent. This clause underscores Hardees's concern for brand reputation and customer experience across all franchise locations.
If Hardees does intervene to resolve customer complaints, the franchisee will bear the financial responsibility for Hardees's intervention. Hardees can charge the franchisee an amount sufficient to cover Hardees's reasonable costs and expenses in resolving the customer complaints. The franchisee is required to pay this amount to Hardees immediately upon demand. This financial responsibility incentivizes franchisees to handle customer complaints effectively and promptly, as unresolved issues could lead to direct costs imposed by Hardees.