When did Hardees complete the Securitization Transaction?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Restaurants"), and the indirect corporate parent of CKE Restaurants is CKE Holding Corporation ("CKE"). All of the CKE Securitization Entities are limited liability companies established on January 30, 2013 and were organized in the state of Delaware. The CKE Securitization Entities are special purpose, bankruptcy remote entities that hold substantially all of the restaurant businesses, franchising assets, real estate and other productive assets of CKE Restaurants and its subsidiaries. CKE Restaurants, together with certain other non-securitization entities, acts as the manager ("Manager") by managing and servicing the assets, performing certain franchising, marketing, real estate, intellectual property and operating and reporting services on behalf of the CKE Securitization Entities. References to "we", "us", "our" and the "Company" may relate to any or all of the CKE Securitization
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the Securitization Transaction was completed on April 1, 2013. In connection with this transaction, Carl's Jr. Funding LLC and Hardee's Funding LLC issued $1,050,000 Series 2013-1 4.474% Class A-2 Senior Secured Notes with an anticipated repayment date of March 2020 and a legal final maturity date of March 2043, along with $100,000 Series 2013-1 Variable Funding Class A-1 Senior Secured Notes due September 2018. These notes were later refinanced in June 2018.
This Securitization Transaction and subsequent refinancings are significant for prospective Hardees franchisees because they provide insight into the financial structure and obligations of the parent company. The ability of the parent company to manage and refinance its debt can impact the resources available for supporting the franchise system, including marketing, training, and operational support. Franchisees should be aware of the financial health of the franchisor, as it can affect the long-term viability and success of their investment.
The fact that Hardees undertook a company-wide refinancing transaction indicates that the company is actively managing its debt and financial obligations. Monitoring these financial activities can help a franchisee assess the stability and potential risks associated with investing in a Hardees franchise. Understanding the terms and conditions of these financial instruments, such as interest rates, repayment dates, and maturity dates, can provide a more comprehensive view of the franchisor's financial strategy.
It is important for potential franchisees to review the financial statements and related notes in the FDD carefully and to seek professional financial advice to fully understand the implications of these transactions. This due diligence will help them make an informed decision about investing in a Hardees franchise and assess the level of financial risk involved.