What is the total APO allocation for a new Hardees franchised restaurant during the initial term?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
*APO allocation is dependent on whether new Franchised Restaurant is located within a DMA that has a regional co-op
Additionally, the APO fee will be reduced to 3% of Gross Sales during the Initial Term of the Franchise Agreement.
Additionally, the APO fee will be reduced to 2% of Gross Sales during the Initial Term of the Franchise Agreement.
HR has the right, following written notice to Franchisee, to reallocate the APO and to increase the APO; however, HR will not increase the APO by more than ½% of Gross Sales in any 12-month period. In addition, HR may not increase the APO above 7% of Gross Sales; however, this limitation on HR does not prevent the Franchised Restaurant's Regional Co-op from requiring a contribution, that when added to Franchisee's HNAF contribution, results in a total APO in excess of 7% of Gross Sales.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the APO (Advertising Promotion Obligation) allocation for a new franchised restaurant is dependent on whether the restaurant is located within a DMA (Designated Market Area) that has a regional co-op.
According to one addendum, the APO fee will be reduced to 3% of Gross Sales during the Initial Term of the Franchise Agreement. According to another addendum, the APO fee will be reduced to 2% of Gross Sales during the Initial Term of the Franchise Agreement.
Hardees, however, has the right to reallocate the APO and increase it, but not by more than 0.5% of Gross Sales in any 12-month period. Hardees cannot increase the APO above 7% of Gross Sales. However, a regional co-op can require a contribution that, when added to the franchisee's HNAF contribution, results in a total APO exceeding 7% of Gross Sales.