What were the advertising expenses for Hardees, as reported in the CKE Securitization Entities Combining Consolidating Statements of Income for 2023?

Based on the 2025 Hardees Franchise Disclosure Document, specific advertising expenses for Hardees as a distinct line item in the CKE Securitization Entities Combining Consolidating Statements of Income for 2023 are not detailed. However, the document does provide some context regarding advertising practices.

The FDD mentions that both international Carl's Jr. and Hardees restaurants contribute to international advertising funds managed by the Manager (CKE Restaurants, together with certain other non-securitization entities). It also states that advertising costs for company-operated restaurants' contributions to the Carl's Jr. Fund and the Hardee's Funds are expensed as company-operated restaurants revenue is earned. Local and incremental advertising costs not funded by these funds are expensed as incurred. Furthermore, the Hardee's National Advertising Fund (HNAF) and local co-operative advertising funds are consolidated.

For a prospective Hardees franchisee, this means that advertising expenses are handled through a combination of national and local funds. While the exact amount spent on advertising in 2023 isn't specified in the provided excerpts, it is clear that franchisees contribute to these funds, and the costs are recognized as expenses as revenue is earned. A potential franchisee should inquire with Hardees about the specific contribution rates to the national and local advertising funds, how these funds are managed, and what types of advertising activities are supported by these funds to fully understand their advertising obligations and the potential benefits they may receive.