In this paper, we examine the uplink data transmission of cell-free massive MIMO orthogonal frequency division multiplexing (CF-mMIMO-OFDM) systems while taking into account the effects of hardware impairments (HWIs). These latter are dominated by the nonlinear distortions (NLD) caused by power amplifiers (PAs) at user equipments (UEs). Considering local receive combining at access points (APs), a distributed approach is introduced to alleviate the impact of HWIs on the system performnce using an iterative NLD cancellation technique. Interestingly, the proposed technique can be implemented in a distributed and scalable manner, demonstrating the benefits of CF-mMIMO-OFDM. The outcomes of the simulations indicate that the proposed technique has a great promise in mitigating the significant impact of HWIs, improving the spectral efficiency (SE) and energy efficiency (EE) performance of the uplink CFmMIMO-OFDM systems.