Under the Hardees Franchise Agreement, what is the Franchisee authorized to do?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
A. HR and Franchisee have entered into a Franchise Agreement pursuant to which Franchisee is authorized to operate a franchised Hardee's Restaurant at the Franchised Location.
Franchisee desires to obtain a license to use the System and to develop and continuously operate one Hardee's Restaurant ("Franchised Restaurant") at the location specified in attached Appendix A ("Franchised Location"), subject to the terms and conditions of this Agreement and in strict compliance with the standards and specifications established by HR.
Franchisee understands and acknowledges the importance of HR's high and uniform standards of quality, operations and service and the necessity of developing and operating the Franchised Restaurant (the "System Standards") in strict conformity with this Agreement, the Development Guide, and the Operation Procedures Manual ("OPM").
During the term of this Agreement, Franchisee shall use the Franchised Location solely for the operation of the Franchised Restaurant and shall maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the Franchised Restaurant at its maximum capacity and efficiency for the minimum number of days and hours set forth in the OPM or as HR otherwise prescribes in writing (subject to the requirements of local laws and licensing requirements).
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.
Franchisee agrees, at its sole expense, to do or cause to be done the following, by the Opening Date:
- (1) Obtain and maintain all required building, utility, sign, health, sanitation, business and other permits and licenses applicable to the Franchised Restaurant.
- (2) Construct all required improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by HR.
- (3) Purchase or lease and install all specified and required fixtures, equipment, furnishings and interior and exterior signs required for the Franchised Restaurant.
Franchisee must participate in the Hardee's Gift Card Program or other gift card program that HR specifies. If necessary, Franchisee must purchase the software, hardware, blank cards, and other items needed to sell and process gift cards or stored value cards, which HR may specify in writing in the OPM or otherwise. Franchisee must sell and honor gift cards only in accordance with HR's written standards.
HR requires Franchisee to offer delivery services only through HR's designated providers to customers in Franchisee's market.
In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Hardee's Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as HR may require.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Hardees Franchise Disclosure Agreement, the franchisee is authorized to operate a Hardee's Restaurant at a specific location, as detailed in the agreement. The franchisee must develop and continuously operate the Hardee's Restaurant in strict compliance with the standards and specifications established by Hardee's, including those found in the Development Guide and the Operation Procedures Manual (OPM).
The franchisee is expected to use the location solely for the Hardee's Restaurant and must maintain sufficient inventory and staff. They must also operate the restaurant at maximum capacity and efficiency for the minimum days and hours outlined in the OPM or as otherwise prescribed by Hardees. The franchisee is responsible for resolving customer complaints regarding food quality, service, or cleanliness, and if they fail to do so adequately, Hardees may intervene and charge the franchisee for the costs incurred.
Furthermore, the franchisee must obtain all necessary permits and licenses, construct improvements according to Hardees' approved plans, and purchase or lease required fixtures, equipment, and signs. They are also required to participate in the Hardee's Gift Card Program and offer delivery services only through Hardees' designated providers. The franchisee must also participate in customer satisfaction programs to maintain the goodwill associated with the Hardee's brand.