What was the amount of amortization of deferred financing costs for Hardees in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
recorded a loss on early extinguishment of debt of $1,283 during fiscal 2025, which was comprised of the write-off of the Series 2018-1 Class A-2-II Notes unamortized deferred financing costs. The loss is included in other income, net in the Combined Consolidated Statements of Income.
Debt issuance costs
In connection with the Series 2024-1 Refinancing and the amendment of the Series 2018-1 Variable Funding Notes, we incurred debt issuance costs of $7,860, which were capitalized and allocated between the Series 2024-1 Class A-2 Notes and the Series 2018-1 Variable Funding Notes. These deferred financing costs will be amortized to
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the amortization of deferred financing costs for fiscal year 2025 was $3,497. This figure is part of the overall interest expense reported by Hardees. For comparison, the amortization of deferred financing costs for the previous fiscal year, 2024, was $3,419.
Deferred financing costs typically include expenses incurred when Hardees secures loans or other forms of financing. These costs are not immediately expensed but are instead capitalized and then amortized over the life of the loan. The amortization expense represents the portion of these initial costs recognized in each accounting period.
For a prospective Hardees franchisee, understanding these financing costs is crucial because they reflect the financial structure and debt management practices of the company. While franchisees are not directly responsible for these costs, they can influence the overall financial health and stability of Hardees, which can indirectly affect franchisees through factors like brand strength and available support services. Reviewing these figures over several years can provide insight into Hardees's financial strategies and potential risks associated with debt management.