For Carls restaurants, who administers the Hardee's local co-operative advertising funds?
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, a third party administers the Hardee's local co-operative advertising funds. These funds are separate from the Hardee's National Advertising Fund (HNAF), which Carls administers internally.
This means that Hardee's franchisees will interact with an outside company for local advertising efforts. Carls maintains control over the national advertising strategy and funds, but local campaigns are managed separately.
For a prospective franchisee, this division of responsibilities could mean less direct control over local advertising but also potentially access to specialized expertise from the third-party administrator. It is important for franchisees to understand how these local co-operative advertising funds are managed, what input they have in local campaigns, and how the effectiveness of these campaigns is measured.
Carls franchisees should inquire about the identity and qualifications of this third-party administrator, as well as the guidelines and procedures for accessing and utilizing the local co-operative advertising funds.