What must a Hardees franchisee do with the difference between their APO and the amount contributed to HNAF and the Regional Co-op?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
You must spend for approved LSM, on a monthly basis, the difference between your APO and the amount you contribute to HNAF and the Regional Co-op. You may develop advertising materials or purchase advertising materials from sources other than HR or its affiliates for your own local use; however, we must approve these advertising materials before first use. These advertising materials should be submitted to HR for review and approval at least 30 days in advance of first use. Within 30 days after the end of each fiscal quarter, you must provide us or our designee with copies of all documentation demonstrating the amount and types of LSM expenditures you made in the prior fiscal quarter.
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, a franchisee has an advertising and promotion obligation (APO). The APO is partially paid to the Hardee's National Advertising Fund (HNAF) and potentially a Regional Co-op. The document specifies that as of the date of the disclosure, 4.25% of Hardee's gross sales is directed to HNAF.
The remaining portion of the APO that is not contributed to the HNAF or a Regional Co-op must be spent on Local Store Marketing (LSM) on a monthly basis. This means franchisees are required to invest in local advertising and promotional activities to drive business to their specific Hardees location.
The Hardees franchisee can develop their own advertising materials or purchase them from other sources other than Hardees or its affiliates for local use. However, Hardees must approve these advertising materials before they are used. Franchisees must submit these materials to Hardees for review and approval at least 30 days before their first use. Within 30 days after the end of each fiscal quarter, the franchisee must provide Hardees with documentation demonstrating the amount and types of LSM expenditures made in the prior fiscal quarter.