Who administers the Hardees Co-ops advertising and marketing programs?
Hardees Franchise · 2025 FDDAnswer from 2025 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.
Domestic Carl's Jr. restaurants contribute to a national advertising fund (the "Carl's Jr. Fund") that is administered by Manager. Domestic Hardee's restaurants contribute to Hardee's National Advertising Fund ("HNAF") that is administered by Manager and co-operative advertising funds that are administered by a third party (collectively, the "Hardee's Funds"), but consolidated by Manager since Manager is the primary beneficiary of the Hardee's Funds. Further, both international Carl's Jr. restaurants and Hardee's restaurants contribute to certain international advertising funds that are administered by Manager.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Hardees Co-ops advertising funds are administered by a third party. These co-ops are local advertising funds, and Hardees also has a national advertising fund (HNAF). The Carl's Jr. national advertising fund, certain international advertising funds, and HNAF are administered internally. However, the Hardees Funds, including the local co-operative advertising funds, are consolidated by Manager since Manager is the primary beneficiary of the Hardee's Funds.
This means that while Hardees oversees some of its advertising efforts directly, the local co-ops operate independently under the guidance of a third party. However, Manager consolidates the Hardee's Funds since Manager is the primary beneficiary. This structure allows for localized marketing strategies while maintaining overall brand consistency and financial oversight.
For a prospective franchisee, this indicates that a portion of their advertising fees will be directed towards these co-ops, which are managed separately. It is important to understand how these co-ops function, how funds are allocated, and what input franchisees have in local advertising strategies. Franchisees should inquire about the specific third-party administrator and the level of control Hardees retains over the co-op's activities, as well as the Manager's role in consolidating the Hardee's Funds.