Who administers the Carl's Jr. Fund advertising and marketing programs for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Company-operated and franchised restaurants jointly share in the cost of various advertising and marketing programs. Advertising and marketing contributions for both company-operated and franchised restaurants are generally determined based on a percentage of revenue and contributed to the applicable funds ratably throughout the year. We administer internally the Carl's Jr. Fund advertising and marketing programs, certain international advertising funds and HNAF. A third party administers the Hardee's local co-operative advertising funds.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the Carl's Jr. Fund advertising and marketing programs are administered internally by Carls. In addition to the Carl's Jr. Fund, Carls also internally manages certain international advertising funds and the Hardee's National Advertising Fund (HNAF).
Franchisees should note that advertising and marketing contributions are typically determined as a percentage of revenue. These contributions are made ratably throughout the year to the applicable funds. This means that a portion of a franchisee's revenue will be allocated to these advertising funds, which are used for marketing programs intended to benefit both company-operated and franchised restaurants.
It is important to note that while Carls manages the Carl's Jr. Fund and certain other advertising funds, the Hardee's local co-operative advertising funds are administered by a third party. This distinction highlights that advertising strategies and fund management can vary within the Carls system, depending on the specific fund and geographic location.