How are advertising and marketing contributions for Hardees restaurants generally determined?

According to Hardees's 2025 Franchise Disclosure Document, advertising and marketing contributions for both company-operated and franchised restaurants are generally determined based on a percentage of revenue. These contributions are made to the applicable advertising funds ratably throughout the year. This means that the amount a franchisee contributes is directly tied to their sales performance, ensuring that higher-revenue locations contribute more to the advertising pool.

Domestic Hardees restaurants contribute to the Hardee's National Advertising Fund (HNAF), which is administered by a manager, and to cooperative advertising funds, which are administered by a third party. All of these funds are consolidated by the manager, as the manager is the primary beneficiary. Both international Carl's Jr. and Hardees restaurants contribute to certain international advertising funds that are also administered by the manager.

This system ensures a consistent flow of funds for advertising efforts, aligning advertising investment with sales performance. For a prospective Hardees franchisee, understanding the specific percentage of revenue required for advertising contributions is crucial for financial planning. Additionally, knowing that a third party administers the local co-operative advertising funds is important for understanding how local advertising efforts are managed and how franchisees can participate in those efforts.