Who administers the Hardees local co-operative advertising funds?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
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 local co-operative advertising funds are administered by a third party. Hardees domestic restaurants contribute to these co-operative advertising funds, as well as the Hardee's National Advertising Fund (HNAF). Both of these funds are collectively known as the "Hardee's Funds."
It is important to note that while a third party administers the local co-operative advertising funds, Hardees's Manager consolidates these funds because Manager is the primary beneficiary. This means that while another entity handles the day-to-day administration, Hardees ultimately has control over how the funds are used and benefits from their activities.
For a prospective franchisee, this means that while they contribute to these local advertising funds, the funds are managed by an outside party, but still fall under the umbrella and financial oversight of Hardees. Understanding the specific roles and responsibilities of this third party, as well as the overall governance of the "Hardee's Funds," would be a prudent area of inquiry for potential franchisees.