What was the amount of deferred franchise fees for Hardees at the beginning of 2023?

According to Hardees's 2025 Franchise Disclosure Document, the deferred franchise fees at the beginning of 2023 are listed in two separate tables. One table shows deferred franchise fees beginning the year at $37,420. The other table shows deferred franchise fees beginning the year at $37,586.

Deferred franchise fees represent initial franchise fees that Hardees has collected from franchisees but has not yet recognized as revenue on its income statement. These fees are typically deferred and recognized over the term of the franchise agreement, which is a common accounting practice in the franchise industry.

For a prospective Hardees franchisee, this information provides insight into how Hardees accounts for its franchise fees. It demonstrates that Hardees does not immediately recognize all initial franchise fees as revenue but rather spreads the recognition over the life of the franchise agreement. This can be important for understanding Hardees's revenue recognition policies and financial performance metrics.

It is important to note that these figures represent the deferred franchise fees for the entire Hardees system, not for an individual franchise location. A prospective franchisee should focus on understanding the initial franchise fee required for their specific location and how that fee will be accounted for by Hardees.