What was the carrying amount of the Series 2018-1 Class A-2-II Notes for Hardees in 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------|---------------| | 2026 | 16,611 | | 2027 | 16,532 | | 2028 | 16,333 | | 2029 | 16,273 | | Thereafter | 80,604 | | Total estimated future amortization expense | $ 163,138 |
NOTE 7 — OTHER CURRENT LIABILITIES
Other current liabilities as of January 31, 2024 and 2023 consisted of the following:
| _ | 2024 | 2023 |
|---|---|---|
| Financing method sale-leaseback liability, current portion | $ 11,287 | $ 10,170 |
| Accrued interest | 5,663 | 5,933 |
| Deferred franchise and development fees | 3,477 | 3,399 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the carrying amount of the Series 2018-1 Class A-2-II Notes in 2023 was $335,125. This figure represents the outstanding principal balance of these specific notes as of the end of the 2023 fiscal year, reflecting the amount Hardees still owed on this particular debt instrument at that time. These notes are part of Hardees' broader debt structure used to finance its operations.
The Series 2018-1 Class A-2 Notes were issued in three tranches, with the Series 2018-1 4.959% Fixed Rate Senior Secured Notes, Class A-2-II having an anticipated repayment date of June 2025. These notes require scheduled quarterly principal payments. Understanding the carrying amount of these notes is crucial for assessing Hardees' financial obligations and overall debt management strategy.
In the first quarter of fiscal 2025, Hardees used a portion of the proceeds from the issuance of the Series 2024-1 Class A-2 Term Notes to repay the Series 2018-1 Class A-2-II Term Notes in full, including accrued interest. This indicates that Hardees actively manages its debt by refinancing and taking advantage of new financing opportunities. For a prospective franchisee, this information provides insight into the financial health and debt management practices of Hardees.