What was the depreciation and amortization amount for Hardees in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
---|-----|-----------|----|-----------| | Allowance for credit losses, beginning of year | $ | 2,375 | $ | 2,033 | | Provision | | 3,246 | | 2,133 | | Recoveries | | (526) | | (894) | | Charge-offs | | (416) | | (897) | | Allowance for credit losses, end of year | $ | 4,679 | $ | 2,375 |
NOTE 4 — PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consisted of the
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the depreciation and amortization expense related to property and equipment for fiscal year 2025 was $36,183. This figure includes the amortization of property under finance leases. For comparison, the depreciation and amortization expense for the previous fiscal year, 2024, was $36,202.
Depreciation and amortization are accounting methods used to allocate the cost of tangible assets (like equipment and buildings) and intangible assets (like patents or trademarks) over their useful lives. This expense reflects the reduction in value of these assets due to wear and tear, obsolescence, or the passage of time. For a Hardees franchisee, understanding these figures can be important for assessing the overall financial health and capital expenditure requirements of the business.
The fact that amortization of property under finance leases is included within depreciation and amortization expense suggests that Hardees utilizes finance leases for some of its property and equipment. Finance leases are a form of financing where the lessee (Hardees, in this case) essentially assumes the risks and rewards of ownership. This detail is relevant for prospective franchisees as it provides insight into the company's financing strategies and potential lease obligations.
It's worth noting that these figures pertain to depreciation and amortization expense related to property and equipment only. Other types of amortization, such as accumulated amortization related to finance leases, are accounted for separately. Franchisees should consult the full financial statements and notes within the FDD to gain a comprehensive understanding of all depreciation and amortization expenses affecting Hardees's financial performance.