When are Hardee's Regional Cooperative contributions due?
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 Hardee's restaurant is located in an area covered by a Regional Cooperative, the contribution due date is the same as the royalty payment due date. The minimum contribution is currently 0.5% of Hardee's Gross Sales, but the Regional Co-op can vote to increase each member’s contribution. Hardee's retains the right to establish a regional advertising and sales promotion cooperative in the regional area where a franchised restaurant is located, requiring franchisees to contribute.
This means that a Hardee's franchisee's financial obligations extend beyond the initial franchise fee and ongoing royalties. They must also contribute to regional advertising efforts if their restaurant falls within a designated cooperative area. The flexibility for the co-op to increase contribution amounts introduces a degree of financial uncertainty, as franchisees could face higher advertising costs based on the decisions of the regional cooperative.
Prospective franchisees should inquire about whether the location they are considering falls within a Regional Co-op, what the current contribution rate is, and how often the co-op has adjusted contribution rates in the past. Understanding the dynamics and financial management of the Regional Co-op is crucial for accurate financial planning. Franchisees should also clarify how royalty payments are remitted to ensure they can meet the Regional Co-op contribution deadlines.