What is the definition of DMA in relation to Hardee's Regional Cooperative?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| upon receipt of invoice | |||
| Hardee’s Advertising | An advertising and promotional obligation (“APO”) in an amount set forth in your Franchise Agreement. Your APO will be up to 7% of Hardee’s Gross Sales. Currently, your APO is 5.5% of Hardee’s Gross Sales. (3) | Divided between HNAF, Regional Co-op and LSM (each as defined below) | |
| Hardee’s National Advertising Fund (“HNAF”) | Currently, 4.25% of Hardee’s Gross Sales | On the 10th day of each month | HNAF contributions are due on the 10th day of each month and are based on Gross Sales in the prior month. |
| Hardee’s Regional Cooperative (“Regional Co-op”) | If your Franchised Restaurant is in an area covered by a Regional Co-op, currently, minimum of 0.5% of Hardee’s Gross Sales; however, your Regional Co- op can vote to increase each member’s contribution. | Same as royalty | We have the right, in our sole discretion, to establish a regional advertising and sales promotion cooperative in the regional area in which your Franchised Restaurant is located (“DMA”) to which you will be required to contribute. |
Source: Item 6 — OTHER FEES (FDD pages 29–36)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, DMA refers to the regional area in which a franchised restaurant is located. Hardees has the right to establish a regional advertising and sales promotion cooperative in this area, to which franchisees will be required to contribute. This cooperative is referred to as the "Regional Co-op".
If a Hardees restaurant is situated in an area covered by a Regional Co-op, the franchisee must contribute a minimum of 0.5% of gross sales to the co-op. However, the Regional Co-op has the ability to vote to increase each member's contribution. These contributions are used for regional advertising and sales promotions within the DMA.
This arrangement means that Hardees franchisees may need to allocate a portion of their gross sales to regional advertising efforts, and the amount can potentially increase based on the decisions made by the Regional Co-op. It is important for prospective franchisees to understand the implications of these contributions and how they might affect their overall advertising budget and strategies.