Hardee s Franchisees. Hardee s Marketing Department. DATE: July 25, Kid s Meals

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1 TO: FROM: Hardee s Franchisees Hardee s Marketing Department DATE: July 25, 2012 RE: 2013 Kid s Meals With recent and increasing legislation aimed at restaurant child offerings, we have been testing the elimination of licensed toys from our Kid s Combo. While our Company restaurants average only 5 kid s meals/day, we realize that some franchisees sell a considerable higher number of kid s meals. Therefore, for 2013, we will be giving franchisees the option of continuing with our current program of licensed property premiums or following the Company in its plan to eliminate the toy from the meal and offering our guests a lower price on our kid s meals. Company restaurants recently conducted two separate tests that eliminated the toy from our kid s meals, served them in a 4# lb. bag and kept the price the same. In both tests, ADQ did not change and we had minimal negative guest feedback. Comments that we did have centered around removing the toy but not offering a better value. Based on these results and potential government mandates, HFS restaurants will be eliminating the toys from our Kid s meals in We will serve our kid s meals in licensed bags similar to the ones we use today however without the toy included. We plan a slight reduction in the price we charge for kid s meals but not the approximate $0.45 cost of our existing premiums. Attached you will find a solicitation for the first premium for 2013 Hotel Transylvania along with the 2013 Cool Kid s Premium Calendar. If you would like to continue to offer the toys with your kid s meals, you will need to order them using the attached form. Please be advised that MBM will be stocking only a minimal supply of generic premiums for use between properties so you will need to order an adequate supply for each of your restaurants that plan to continue to offer a toy with each kid s meal purchase.

2 As an additional buffer for this change, we plan on producing and shipping a supply of bag stuffers that we intend to offer with any kid s meal purchased after our new program commences. Also attached is an order form for these flyers. Should you have any questions please don t hesitate to call your Field Marketing Manager. Bagstuffer (art not final)

3 Don t Miss Out! Time to order your kid s meal premiums! Order Deadline: August 10th From SONY Pictures Animation

4 IN-STORE PROMOTION: starting January 2013 Hotel Transylvania DVD Tie-In PLEASE COMPLETE THE ATTACHED ORDER FORM Welcome to the Hotel Transylvania! Dracula s lavish five-stake resort, where monsters and their families can live it up, free to be the monsters they are without humans to bother them. On one special weekend, Dracula has invited some of the world s most famous monsters Frankenstein and his bride, the Mummy, the Invisible Man, a family of werewolves, and more to celebrate his daughter Mavis s 118th birthday. For Drac, catering to all of these legendary monsters is no problem but his world could come crashing down when one ordinary guy stumbles on the hotel and takes a shine to Mavis. Animated family comedy Anticipated PG rating Stars Adam Sandler, Kevin James, David Spade, Steve Buscemi, Andy Samberg, Selena Gomez, Fran Drescher and Cee Lo Green Click Here to Watch the Trailer MONSTER PUZZLES Includes 4 puzzles in plastic case MURRAY THE MUMMY Ripcord spinning top HANGING SKELETON Glow-in-the-dark TOYS SUBJECT TO CHANGE MATCH GAME Includes 24 cards in plastic case

5 Hardee s 2013 Cool Kids Promotion Calendar Anticipated Program Order Deadline Promotion Date Weeks Hotel Transylvania August 10th 12/31/12-2/24/ (Sony/DVD) Rise of the Guardians October 5th 2/25/2013 4/21/ (DreamWorks/DVD) Percy Jackson: Sea of Monsters November 30th 4/22/2013 6/16/ (Fox/Theatrical) Happy Star Games January 25th 6/17/2013 8/11/ Funbrain March 29th 8/12/ /6/ (Pearson Videogame) Despicable Me 2 May 17th 10/7/ /1/ (Universal/DVD) Smurfs 2 July 12th 12/2/2013 1/26/ (Sony/DVD)

6 Cool Kids Premiums Order Form Promotion Hotel Transylvania Franchise Code Ordered by Contact # Confirmation # Order Deadline August 10 th Premiums are packed 200 per case and are distributed to the units via their Distribution Center. Bagstuffers are packed 200 per pack and distributed by Archway (Synq Solutions). Enter the number of cases/packs Ship Date week of 12/24 Premium Ship Date week of 1/7 Bag Stuffer 6515-BS Ship Date week of 12/24 Estimated Cost $93 $103 $93 $103 $3 $6 plus shipping & handling Unit # Quantity Quantity Quantity To place your order: harpopord@synqsolutions.com / Fax / Phone