factual

If I purchase local advertising and promotional materials for my Hardees franchise from a source other than HR or its affiliates, what must I do?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

porate any fund and may have a separate entity manage the fund.

Unaudited reports of the operations of HNAF and the Regional Co-ops are prepared annually and are available to you upon written request.

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. You must pay 100% of the cost of the point of purchase advertising materials that we require you to purchase from our designated vendor. In fiscal year ended January 27, 2025, HNAF funded certain point of sale kits for both franchised and company-operated Hardee's Restaurants. HR or its designee periodically will advise you of the advertising and sales promotions approved by HR.

Local advertising and promotion materials may be purchased from any HR-approved source.

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, if you choose to develop or purchase local advertising and promotional materials from a source other than Hardees or its affiliates, you must submit these materials to HR for review and approval at least 30 days before their first use. Hardees retains the right to approve or deny these materials at its sole discretion.

The advertising materials must comply with all federal and local laws and regulations, as well as the advertising and promotion guidelines established by Hardees. This ensures that all advertising efforts align with legal standards and the brand's overall marketing strategy.

Hardees specifies certain criteria that advertising materials must not violate. Specifically, the advertising must not be in bad taste, offensive to the public, defamatory, infringe on another's trademarks, or be inconsistent with Hardees' public image. These restrictions are in place to protect the brand's reputation and maintain a consistent and positive image across all franchise locations.

Within 30 days after the end of each fiscal quarter, you must provide Hardees or its designee with documentation demonstrating the amount and types of local store marketing (LSM) expenditures you made in the prior fiscal quarter. This ensures transparency and accountability in how franchisees are spending their advertising dollars at the local level.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.