Are Hardees Restaurants operated by HR and its affiliates required to contribute to the HNAF, and if so, on what basis?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
HR has established, and will maintain and administer HNAF for the creation and development of advertising, marketing, social media and public relations, research and related programs, gift card and loyalty programs, activities and materials that HR, in its sole discretion, deems appropriate. Franchisee shall contribute to HNAF the amount set forth in Appendix C, as may subsequently be modified pursuant to Section 8.E. Hardee's Restaurants operated by HR and its affiliates shall contribute to HNAF on the same basis as comparable franchisees. Unless modified in writing by HR, HNAF contributions are due on the tenth (10th) day of each month.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees Restaurants operated by HR and its affiliates are required to contribute to the Hardee's National Advertising Fund (HNAF). The basis for their contribution is the same as that of comparable franchisees. This means that company-owned Hardees locations are held to the same standard as franchised locations regarding contributions to the national advertising fund.
This arrangement ensures that there is no preferential treatment between company-owned and franchised locations in terms of advertising contributions. All restaurants contribute to the HNAF on a level playing field. This promotes fairness and aligns the interests of Hardees and its franchisees in supporting the brand's advertising and marketing efforts.
Prospective franchisees can take comfort in knowing that Hardees's corporate-owned stores are also invested in the HNAF, demonstrating a shared commitment to brand promotion. Franchisees should review Appendix C of the Franchise Agreement, as referenced in the quoted text, to understand the specific contribution amounts and any potential modifications to these amounts as outlined in Section 8.E.