For Hardees, what was the carrying value of land leased to others as of January 31, 2024?

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. These leases involve fixed payments, and some include variable rent based on sales exceeding certain levels or a percentage of sales. Generally, the lessees or sublessees are responsible for covering the costs of maintenance, insurance, and property taxes. The FDD indicates that the financial statements will contain the carrying values of assets leased to others as of January 31, 2024, but the actual values are not present in the provided excerpts.

Because the specific carrying values are not included in the provided excerpts, a prospective Hardees franchisee should carefully review the complete financial statements within Item 21 of the FDD. This section would provide detailed figures on the assets Hardees leases to others. Understanding these values can offer insights into Hardees's financial strategy related to real estate and refranchising.

To gain a comprehensive understanding, a potential franchisee should ask Hardees for clarification on the nature of these leased assets, the terms of the leases, and the impact of these leases on Hardees's overall financial performance. This information is crucial for assessing the financial stability and potential risks associated with investing in a Hardees franchise.