What were the distributions to members from the CKE Securitization Entities combined consolidated statements of members' deficit related to Hardees as of January 31, 2023 to January 31, 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2025 | $ 16,202 |
|---|---|
| 2026 | 16,212 |
| 2027 | 16,410 |
| 2028 | 17,250 |
| 2029 | 17,813 |
| Thereafter | 66,043 |
| Total minimum lease payments | 149,930 |
| Less amount representing interest | (32,652) |
| Residual property obligation (1) , deferred financing costs and deferred sales proceeds | 102,346 |
| Financing method sale-leaseback liability | 219,624 |
| Less current portion | (11,287) |
| Financing method sale-leaseback liability, less current portion | $ 208,337 |
(1) Although we have legally transferred title of the sale-leaseback properties, we have included an obligation to convey, for accounting purposes, the sale-leaseback assets at the end of the primary lease term. This obligation was established in acquisition accounting and based on the estimated residual value of the sale-leaseback assets at the end 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 CKE Securitization Entities made cash distributions to members totaling $139,428 during fiscal year 2023 (ended January 31, 2023) and $133,746 during fiscal year 2024 (ended January 31, 2024). These distributions are part of the combined consolidated statements of members' deficit for the entities that include Hardees.
For a prospective Hardees franchisee, this information provides insight into how the CKE Securitization Entities manage their finances and distribute cash. The consistent distribution of significant funds to members suggests a degree of financial stability and profitability within these entities. However, it is important to note that these figures represent the total distributions across all entities within the CKE Securitization structure, not just those specifically related to Hardees.
A potential franchisee should consider these distributions in the context of the overall financial health of the CKE Securitization Entities. While distributions can be a positive sign, it is crucial to evaluate the long-term sustainability of these payments and understand how they might be affected by changes in revenue, expenses, or debt obligations. Reviewing the complete financial statements and related notes is essential for a comprehensive understanding.
It would be prudent for a prospective Hardees franchisee to discuss these distributions with the franchisor to gain further clarity on the factors influencing these payments and their potential impact on the franchise system. Understanding the relationship between capital contributions and cash distributions can provide a more complete picture of the financial dynamics within the CKE Securitization Entities.