What was the amount of Hardees' nondeductible share-based compensation in fiscal year 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
of consulting fees, which are included in general and administrative expense in our accompanying Consolidated Statements of Operations for fiscal 2024 and 2023, respectively.
The management advisory and consulting services agreement also provides that Roark may earn future fees in connection with certain business acquisition transactions, an initial public offering or a change of control transaction. The management advisory and consulting services agreement includes customary exculpation and indemnification provisions in favor of Roark and its affiliates.
NOTE 20 — INCOME TAXES
Income tax expense consisted of the following:
| | Fiscal 2024 | Fiscal 2023 | |-----
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the nondeductible share-based compensation for fiscal year 2023 was $163. This figure represents expenses related to equity-based awards that are not eligible for deduction when calculating the company's income tax liability. Share-based compensation typically involves issuing stock options or restricted stock to employees, and the non-deductible portion can arise due to various tax regulations.
For a prospective Hardees franchisee, this information provides insight into the financial management and tax strategies employed by the company. While it does not directly impact the franchisee's day-to-day operations, understanding the financial structure of the parent company can be beneficial. It demonstrates how Hardees manages its executive compensation and how it affects the overall tax expense of the company.
The table also shows the corresponding amount for fiscal year 2024, which was $446. This increase from 2023 to 2024 could be due to changes in the company's equity-based compensation plans or changes in tax regulations. Reviewing these figures over multiple years can provide a more comprehensive understanding of the company's financial trends and compensation practices.
It is important to note that these figures are part of the broader financial statements of Hardees and should be considered in conjunction with other financial data to gain a complete picture of the company's financial health. Franchisees may want to discuss these figures with a financial advisor to understand their potential implications.