What was the amount of unrecognized tax benefits at the beginning of the year for Hardees in Fiscal Year 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
L and income tax credit carryforwards. During fiscal 2024, we decreased our valuation allowance by $658.
As of January 31, 2024, we have state tax credit carryforwards of $406, that will expire, if unused, in fiscal 2034. As of January 31,
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the amount of unrecognized tax benefits at the beginning of fiscal year 2024 was $3,628. This figure represents tax benefits that Hardees has taken on its tax returns but that have not yet been recognized by the relevant tax authorities.
For a prospective Hardees franchisee, understanding unrecognized tax benefits is crucial because it reflects the company's tax position and potential liabilities. These unrecognized benefits could be subject to adjustment by tax authorities, which may impact Hardees's overall financial health. While this figure does not directly impact the franchisee's day-to-day operations, it provides insight into the financial management and tax strategies of the parent company.
It is important to note that the unrecognized tax benefits are subject to change due to settlements with taxing authorities or the expiration of statutes of limitations. Hardees's management makes estimations regarding potential decreases in these benefits, which could affect the company's financial statements. Therefore, franchisees should consider these factors as part of their due diligence, assessing the stability and reliability of Hardees's financial practices.