What is the due date for the Hardee's Advertising and Promotional Obligation (APO) payments?
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. |
| Hardee’s Local Store Marketing (“LSM”) | Difference between your APO and the amount you contribute to HNAF and a Regional Co-op | Not paid to HR | You may develop advertising materials for your own use; however, we must approve these advertising materials in advance of use. LSM monies may be spent only for approved advertising. (4) |
Source: Item 6 — OTHER FEES (FDD pages 29–36)
What This Means (2025 FDD)
According to Hardee's 2025 Franchise Disclosure Document, the Advertising and Promotional Obligation (APO) is divided into three parts: the Hardee's National Advertising Fund (HNAF), the Regional Cooperative (Regional Co-op), and Local Store Marketing (LSM). The due dates for these components vary.
The HNAF contributions, which currently amount to 4.25% of Hardee's Gross Sales, are due on the 10th day of each month. These contributions are based on the Gross Sales from the prior month. If a franchisee is in an area covered by a Regional Co-op, the minimum contribution is currently 0.5% of Gross Sales, but the Regional Co-op can vote to increase this amount. These payments are due at the same time as royalty payments, though the FDD excerpt does not specify when the royalty is due.
The remaining portion of the APO is allocated to Local Store Marketing (LSM). This amount is the difference between the total APO (up to 7% of Gross Sales, currently 5.5%) and the amounts contributed to the HNAF and Regional Co-op. These LSM funds are not paid to Hardee's Restaurants Inc. (HR); instead, franchisees use them for their own local advertising efforts, with the caveat that Hardee's must approve all advertising materials before use. Therefore, there is no specific due date for LSM since the franchisee manages these funds directly.