What was the amortization of finance lease assets for Hardees in fiscal year 2024?

According to Hardees's 2025 Franchise Disclosure Document, the amortization of finance lease assets for the fiscal year 2024 was $1,596. This figure represents the expense recognized during that period related to the depreciation of assets Hardees holds under finance leases.

For a prospective Hardees franchisee, understanding finance lease amortization is crucial because it impacts the overall cost structure and profitability of the business. Finance leases are essentially long-term rentals where the franchisee gains many of the benefits and risks of ownership, and the amortization reflects the gradual expensing of the asset's cost over its useful life. This expense is tax-deductible, which can provide some financial relief.

The FDD also provides additional context by listing the interest on finance lease liabilities, variable lease costs, and total finance lease costs, allowing for a comprehensive view of Hardees's leasing obligations. Reviewing these figures helps potential franchisees assess the financial implications of leasing versus purchasing assets outright. It's important to note that these costs can vary depending on the specific assets leased and the terms of the lease agreements.

In addition to finance lease costs, the FDD details operating lease costs, offering a broader picture of Hardees's overall lease expenses. By examining both finance and operating lease costs, prospective franchisees can gain a better understanding of the total lease burden and its impact on the franchise's financial performance. This information is essential for making informed decisions about capital investments and financial planning.