On what basis do Hardees Restaurants operated by the franchisor contribute to HNAF?

According to Hardees' 2025 Franchise Disclosure Document, Hardees Restaurants operated by the franchisor contribute to the HNAF (Hardees National Advertising Fund) on the same basis as comparable franchisees. This means that company-operated restaurants are subject to the same advertising and promotion obligations (APO) as franchised locations. As of the date of the FDD, this obligation is 4.25% of Hardee's Gross Sales.

This contribution is due on the tenth day of each month. The funds collected are used for advertising, marketing, public relations, research, gift card and loyalty programs, and related activities. Hardees, or its designee, has sole discretion over these programs, including creative concepts, materials, and media placement.

In areas covered by a Regional Co-op, both company-operated and franchised Hardees Restaurants contribute to the co-op. The contribution to the Regional Co-op is a minimum of 0.5% of Hardee's Gross Sales, but the Regional Co-op can vote to increase this percentage. This ensures that both franchised and company-operated restaurants support advertising efforts at both the national and regional levels, fostering brand awareness and customer engagement.