What was the carrying amount of the Series 2020-1 Class A-2 Notes for Hardees in 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Financing method sale-leaseback liability, long-term portion | $ 208,337 | $ 219,707 |
| Deferred franchise and development fees | 32,487 | 32,730 |
| Deferred beverage income | 5,721 | 3,645 |
| Unfavorable lease agreements | 4,132 | 6,320 |
| Other | 124 | 108 |
| Total other long-term liabilities | $ 250,801 | $ 262,510 |
NOTE 12 — MEMBERS' DEFICIT
During fiscal 2024 and 2023, the CKE Securitization Entities received capital contributions of $35,679 and $45,394, respectively, consisting principally of property and
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the carrying amount for the Series 2020-1 Class A-2 Notes in 2023 was $385,688. This figure represents the book value of the debt on Hardees's financial statements at that time. The estimated fair value of these notes was $346,802.
Understanding the carrying amount and fair value of Hardees's debt can provide insight into the company's financial health and stability. The carrying amount reflects the outstanding principal balance of the notes, while the fair value represents the market's assessment of their worth. A significant difference between these two values could indicate potential risks or opportunities for investors.
For a prospective Hardees franchisee, this information is relevant because it contributes to the overall picture of the company's financial structure. While franchisees are not directly liable for this debt, the financial stability of the parent company can impact the support and resources available to franchisees. Therefore, reviewing these figures in the FDD can be a part of a comprehensive due diligence process.