On what are Hardee's HNAF contributions based?
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. |
Source: Item 6 — OTHER FEES (FDD pages 29–36)
What This Means (2025 FDD)
According to Hardee's 2025 Franchise Disclosure Document, contributions to the Hardee's National Advertising Fund (HNAF) are based on a percentage of gross sales from the prior month. Specifically, the FDD states that the HNAF contributions are based on Gross Sales in the prior month. Currently, this contribution is set at 4.25% of Hardee's Gross Sales. These contributions are due on the 10th day of each month.
This means that a Hardee's franchisee's advertising contribution will fluctuate depending on their restaurant's sales performance. Higher sales in a given month will result in a larger HNAF contribution the following month, while lower sales will result in a smaller contribution. This system ensures that the advertising fund grows and shrinks in proportion to the overall success of the Hardee's franchise system.
For a prospective franchisee, it's important to understand how gross sales are defined in the Franchise Agreement, as this definition will directly impact the HNAF contributions. Additionally, franchisees should be aware that while the current contribution is 4.25% of gross sales, this percentage could potentially change over time, as indicated elsewhere in the FDD that the franchisee's advertising and promotional obligation could be up to 7% of Gross Sales.