What was the total amount of expenses for advertising funds for Hardees in Fiscal Year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Long-term debt, less current portion | | 1,112,394 | | 1,108,022 | | Finance leases, less current portion | | 21,279 | | 23,370 | | Operating leases, less current portion | | 338,608 | | 366,233 | | Deferred income tax liabilities, net | | 159,524 | | 171,393 | | Other long-term liabilities | | 246,968 | | 263,631 | | Total liabilities | | 2,061,428 | | 2,121,083 | | Commitments and contingencies (Notes 8, 9, 10 and 14) | | | | | | Equity: | | | | | | Common stock, $0.01 par value; 100 shares authorized, issued and outstanding as of January 31, 2025 and 2024 | | _ | | | | Additional paid-in capital | | 736,970 | | 736,438 | | Accumulated deficit | | (564,357) | | (495,148) | | Accumulated other comprehensive loss | | (504,557) $(55)$ | | (1,157) | | Total equity | | 172,558 | | 240,133 | | Total liabilities and equity | | 2,233,986 | $ | 2,361,216 | | rotal natimites and equity | . Ψ | 4,433,960 | Ψ | 4,501,410 |
CKE RESTAURANTS HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands)
| Fiscal 2025 | Fiscal 2024 |
|---|
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total advertising funds expense for the fiscal year 2025 was $197,885. This figure represents the expenses related to advertising and marketing programs for both company-operated and franchised Hardees restaurants. These contributions are typically determined as a percentage of revenue and are contributed ratably throughout the year.
It's important to note that Hardees distinguishes between national and local advertising efforts. The Hardees National Advertising Fund (HNAF) and local co-operative advertising funds (Hardees Co-ops) are consolidated by the Manager, indicating that Hardees exercises significant control over these advertising funds. However, a third party administers the Hardee's Co-ops.
For a prospective Hardees franchisee, understanding these advertising expenses is crucial. Franchisees contribute a percentage of their revenue to these funds, which are then used for marketing and advertising initiatives. The FDD also mentions that advertising costs for company-operated restaurants' contributions to the Advertising Funds is eliminated in consolidation. Additionally, the cost of local and incremental advertising that is not funded by the Advertising Funds is expensed as incurred. This means that franchisees may also need to budget for local advertising efforts beyond their contributions to the national and co-operative funds.