What was the deferred federal income tax expense for Hardees in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ith Roark. In exchange for advice concerning management, finance, marketing, strategic planning and other advisory and consulting services provided to us by Roark and its affiliates, Roark receives consulting fees and reimbursement of reasonable expenses. The current annual consulting fee of $3,461 is payable in equal quarterly installments and subject to an increase of three percent per
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the deferred federal income tax expense for fiscal year 2025 was $(8,988). This figure is part of the broader income tax expenses reported in the financial statements. It is important to note that this is an expense, as indicated by the negative sign.
Deferred income taxes arise from temporary differences between the accounting and tax treatment of certain items. A deferred tax expense indicates that Hardees's taxable income was higher than its book income in 2025, resulting in a future tax liability. This can occur due to various factors such as accelerated depreciation methods used for tax purposes or differences in revenue recognition.
For a prospective Hardees franchisee, understanding these figures is crucial for assessing the overall financial health and tax strategies of the company. While franchisees typically manage their own business's taxes, the financial stability of the parent company can impact brand reputation and support services. Therefore, reviewing the complete financial statements and understanding the underlying reasons for deferred tax expenses is advisable.
It is also worth noting that the FDD includes a reconciliation of income tax expense at the federal statutory rate of 21.0% to Hardees's actual income tax expense for both fiscal years 2025 and 2024. This reconciliation can provide further insights into the factors influencing the company's tax liabilities and effective tax rate.