What is a Hardees franchisee required to do regarding advertising and promotion?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
or inspection to be greater than 2%, Franchisee also shall reimburse HR for the reasonable cost of the audit or inspection including, without limitation, the charges of attorneys and independent accountants, and the travel expenses, room, board and compensation of HR's employees or designees involved in the audit or inspection. The foregoing remedies shall be in addition to all other remedies and rights available to HR under this Agreement or applicable law.
If Franchisee fails to provide HR on a timely basis with the records, reports and other information required by this Agreement or, upon request of HR, with copies of same, HR or its designee shall have access at all reasonable times (and as often as necessary) to Franchisee's books and records for the purpose, among other things, of preparing the required records, reports and other information. Franchisee promptly shall reimburse HR or its designee for all costs and expenses associated with HR obtaining such records, reports or other information. Franchisee also acknowledges that HR has the right at any time to communicate directly with Franchisee's lenders, any other creditors, any suppliers and all regulatory authorities regarding Franchisee, Franchisee's business or any aspect of the Franchised Restaurant.
8. ADVERTISING AND PROMOTION
A. Contributions/Expenditures by Franchisee
During the term of this Agreement, Franchisee shall have a weekly advertising and promotion obligation ("APO") in the amount set forth in Section 6.C. and Appendix C. Following written notice to Franchisee, HR may modify the amount and allocation of the APO subject to the provisions of Section 8.E. Franchisee shall pay that portion of the APO as HR may direct to the Hardee's National Advertising Fund ("HNAF") in accordance with Section 8.B. The remainder of the APO shall be paid, as directed by HR, at the same time and in the same manner as the royalty fee, to a Regional Co-op in accordance with Section 8.C., and/or spent by Franchisee for local store marketing ("LSM") in accordance with Section 8.D.
**B.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, franchisees have specific obligations regarding advertising and promotion. Franchisees must adhere to a weekly advertising and promotion obligation (APO), the amount of which is detailed in Section 6.C. and Appendix C of the agreement. Hardees retains the right to modify the amount and allocation of this APO, as outlined in Section 8.E.
A portion of the APO is directed to the Hardee's National Advertising Fund (HNAF), which Hardees manages for creating advertising, marketing, social media, public relations, research, gift card and loyalty programs. The specific amount franchisees must contribute to the HNAF is detailed in Appendix C and may be adjusted. Hardees also contributes to the HNAF on the same basis as its franchisees. The remaining portion of the APO is allocated as directed by Hardees, which may include contributions to a Regional Co-op, or spending on local store marketing (LSM) initiatives, as per Sections 8.C and 8.D.
Franchisees are required to participate in all advertising, marketing, promotions, research, and public relations programs initiated by the HNAF. Hardees, at its discretion, may furnish franchisees with marketing, advertising, and promotional materials, charging the cost of production along with shipping, handling, and storage. Hardees maintains control over all advertising, marketing, and public relations programs financed by the HNAF, including creative concepts, materials, endorsements, and the placement and allocation of advertising and marketing materials.