What was the carrying value of Hardees' land leased to others in 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 9 — LEASES
We occupy land and buildings under lease agreements expiring on various dates through fiscal 2046. Many leases provide for future rent escalations and renewal options. In addition, variable lease payments, such as a percentage of sales in excess of specified levels, are often required. Most leases obligate us to pay costs of maintenance, insurance and property taxes.
Company as Lessor
We lease and sublease land and buildings to others, primarily as a result of the refranchising of certain restaurants. Many of these leases provide for fixed payments, while others provide for variable rent when sales exceed certain levels or for rent based on a percentage of sales. Lessees and sublessees generally bear the cost of maintenance, insurance and property taxes. The carrying values of assets leased to others as of January 31, 2025 and 2024 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Land | $ 104,028 | $ 118,052 |
| Leasehold improvements | 3,916 | 8,147 |
| Buildings and improvements | 68,563 | 86,423 |
| 176,507 | 212,622 | |
| Less accumulated depreciation and amortization | (57,231) | (71,465) |
| Total assets leased to others | $ 119,276 | $ 141,157 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the company leases and subleases land and buildings to others, primarily due to the refranchising of certain restaurants. The financial statements include the carrying values of assets leased to others.
Specifically, the carrying value of land leased to others by Hardees in 2023 was $118,052. This figure represents the value of the land on the company's books as of January 31, 2023.
In addition to land, Hardees also leased leasehold improvements and buildings and improvements to others. The total assets leased to others, which includes land, leasehold improvements, and buildings and improvements, less accumulated depreciation and amortization, was $141,157 in 2023. This indicates the scope of Hardees' leasing activities as a lessor.