diff --git a/templates/rhsm-katello-reconfigure.erb b/templates/rhsm-katello-reconfigure.erb
index 829c3e07..b1dbaac0 100755
--- a/templates/rhsm-katello-reconfigure.erb
+++ b/templates/rhsm-katello-reconfigure.erb
@@ -100,7 +100,7 @@ fi
 
 
 FQDN=`hostname -f`
-if [ $? == "0" ] && [ -d /etc/rhsm/facts/ ]; then
+if [ $? == "0" ] && [ "$FQDN" != "localhost" ] && [ -d /etc/rhsm/facts/ ]; then
   echo "{\"network.hostname-override\":\"$FQDN\"}" > /etc/rhsm/facts/katello.facts
 fi