Is the APO allocation for a Hardees franchise dependent on whether the new franchised restaurant is located within a DMA that has a regional co-op?

According to Hardees's 2025 Franchise Disclosure Document, the Advertising and Promotion Obligation (APO) allocation for a new franchised restaurant is dependent on whether it is located within a Designated Market Area (DMA) that has a regional co-op. This means that the amount a franchisee is required to spend on advertising and promotion can vary based on the presence and requirements of a regional advertising cooperative in their area.

If a Hardees franchise is located within a DMA with a regional co-op, the franchisee will be required to contribute to that co-op. The amount of this contribution is determined by Hardees and/or the Regional Co-op. The franchisee must also spend on Local Store Marketing (LSM) the difference between their total APO and the amounts contributed to both the Hardee's National Advertising Fund (HNAF) and the Regional Co-op.

This system allows Hardees to tailor advertising and promotional efforts to specific regions, potentially increasing the effectiveness of marketing campaigns. However, it also means that franchisees in different areas may have varying advertising costs and obligations. Franchisees should be aware of whether their DMA has a regional co-op and understand the financial implications of participating in it.