What is the total APO allocation for a Hardees franchise during its first 12 months of operation?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| APO Allocation by Period | Total APO | HNAF | Regional Co-op | LSM Allocation |
|---|---|---|---|---|
| Year 1: First 12 months | 2.50% | |||
| Year 2: Second 12 months | 3.50% | |||
| Year 3: Third 12 months | 4.50% | |||
| Years 4 and beyond | 5.50% |
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the total Advertising and Promotion Obligation (APO) allocation for a new franchise during its first 12 months of operation is 2.50%. This contribution is allocated to different areas such as the Hardee's National Advertising Fund (HNAF), regional co-ops, and local store marketing (LSM). However, the specific allocation to each of these areas is not detailed in this table.
It's important to note that this APO fee might be subject to change under certain addenda to the franchise agreement. One addendum mentions a reduction to 3% of Gross Sales during the initial term of the agreement, while another indicates a reduction of 3% of Gross Sales for the first 12 months. These changes suggest that the actual APO contribution could vary depending on specific agreements and incentives in place.
Prospective franchisees should clarify with Hardees the specific APO allocation applicable to their franchise agreement, taking into account any potential incentives or addenda that may modify the standard allocation. Understanding how these funds are distributed between national advertising, regional efforts, and local marketing is crucial for planning and budgeting.