factual

By what day of each month are Hardees' HNAF contributions due?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

During the term of the Franchise Agreement, you will have an advertising and promotion obligation ("APO") in the amount set forth in an appendix to the Franchise Agreement. You will pay that portion of the APO as we direct (which, as of the date of this disclosure document, is 4.25% of Hardee's Gross Sales) to HNAF as described in the next paragraph. HNAF contributions are due on the tenth day of each month. The remainder of the APO is paid to a Regional Co-op and/or will be spent by you for LSM. There is no franchisee advertising council that advises HR on advertising policy. Hardee's Restaurants operated by us contribute to HNAF on the same basis as comparable franchisees. Vendors and other suppliers also may contribute to HNAF.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 44–57)

What This Means (2025 FDD)

According to Hardees's 2025 Franchise Disclosure Document, contributions to the Hardee's National Advertising Fund (HNAF) are due on the tenth day of each month. Franchisees are obligated to contribute a portion of their Advertising and Promotion Obligation (APO) to HNAF, which, as of the date of the disclosure document, is 4.25% of Hardee's Gross Sales.

The remainder of the APO is allocated to a Regional Co-op or spent by the franchisee on Local Store Marketing (LSM). Hardees has the right to reallocate the APO and increase it, but the APO will not increase by more than 0.5% of Gross Sales in any 12-month period, and may not increase the APO above 7% of Gross Sales. However, the Regional Co-op can vote to increase each member's contribution, that when added to your HNAF contribution, results in a total APO in excess of 7% of Gross Sales.

Hardees Restaurants operated by the company contribute to HNAF on the same basis as comparable franchisees. The HNAF is administered by HR or its designee, and it is not a trust or escrow account, meaning HR has no fiduciary obligation to franchisees regarding the fund. Hardees retains the right to terminate HNAF and establish a different advertising fund or terminate and restart any Regional Co-op.

Prospective franchisees should be aware of these advertising contribution requirements and the potential for changes in the allocation or amount of the APO. It is important to factor these costs into their financial projections and understand the terms and conditions governing the HNAF and Regional Co-ops.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.