Can a Hardee's Regional Co-op vote to increase each member's contribution?
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 Hardee's 2025 Franchise Disclosure Document, if a franchisee's restaurant is in an area covered by a Regional Co-op, the Regional Co-op can vote to increase each member's contribution. Currently, the minimum contribution is 0.5% of Hardee's Gross Sales. This contribution is paid at the same time as royalty fees.
Hardee's, at its sole discretion, has the right to establish a regional advertising and sales promotion cooperative in the regional area in which a franchised restaurant is located. Franchisees are required to contribute to this co-op if one is established in their area.
This means that while the initial contribution to the Regional Co-op is a minimum of 0.5% of gross sales, franchisees need to be aware that this percentage can increase if the members of the Regional Co-op vote in favor of an increase. Franchisees should inquire about the history of contribution increases and the factors that might influence future increases to better understand the potential financial obligations.