What was the amount of unrecognized tax benefits at the end of Fiscal Year 2024 for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
jurisdictional basis and statutory expiration dates of NOL and income tax credit carryforwards. During fiscal 2025, we decreased our valuation allowance by $8,543.
As of January 31, 2025, we have state tax credit carryforwards of $129, that will expire, if unused, in fiscal 2043. As of January 31, 2025, we have state NOL carryforwards in the amount of approximately $24,752, which expire in varying amounts from fiscal 2026 through 2034. As of January 31, 2025, we have $81 of net deferred income tax assets related to our state NOL carryforwards, which represent our expected future tax savings from such carryforwards, after considering the impact of past ownership changes on our ability to utilize such carryforwa
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 end of Fiscal Year 2024 was $3,347. This figure represents the tax benefits that Hardees has taken on its tax returns but have not yet been recognized by the relevant tax authorities. These benefits are subject to potential adjustments upon examination by these authorities.
The unrecognized tax benefits can arise from various tax positions taken by Hardees, including deductions, credits, or exclusions. These positions may be challenged by tax authorities, and the ultimate resolution of these challenges could impact Hardees's financial statements. The company monitors these tax positions and adjusts its reserves for unrecognized tax benefits as new information becomes available.
For a prospective Hardees franchisee, understanding these figures is crucial as it provides insight into the company's tax strategies and potential tax liabilities. While the franchisee is not directly responsible for Hardees's overall corporate taxes, these figures reflect the financial health and tax management practices of the franchisor, which can indirectly affect the entire franchise system. It is important to note that these unrecognized tax benefits are subject to change based on tax regulations and the outcomes of audits.