Who has the right to establish a regional advertising and sales promotion cooperative for Hardee's?
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, Hardee's, at its sole discretion, has the right to establish a regional advertising and sales promotion cooperative in the regional area where a franchised restaurant is located. This regional area is referred to as a Designated Market Area (DMA). If Hardee's establishes a regional cooperative, franchisees are required to contribute to it.
The purpose of the regional advertising cooperative is to manage advertising and sales promotions on a regional level. This allows for more targeted and effective marketing campaigns that are tailored to the specific needs and preferences of customers in a particular area. The funds contributed by franchisees are used to finance these regional advertising efforts.
Franchisees should be aware that Hardee's decision to establish a regional cooperative is entirely at their discretion. If a cooperative is established in their DMA, franchisees will be obligated to contribute, with the minimum contribution currently set at 0.5% of gross sales. However, the regional co-op has the ability to vote to increase each member's contribution. This means that franchisees need to factor in the potential for increased advertising costs when evaluating the financial viability of their Hardee's franchise.