What was the estimated fair value of the Series 2018-1 Class A-2-III Notes for Hardees in 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Financing method sale-leaseback liability, long-term portion | $ 208,337 | $ 219,707 |
| Deferred franchise and development fees | 32,487 | 32,730 |
| Deferred beverage income | 5,721 | 3,645 |
| Unfavorable lease agreements | 4,132 | 6,320 |
| Other | 124 | 108 |
| Total other long-term liabilities | $ 250,801 | $ 262,510 |
NOTE 12 — MEMBERS' DEFICIT
During fiscal 2024 and 2023, the CKE Securitization Entities received capital contributions of $35,679 and $45,394, respectively, consisting principally of property and
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the estimated fair value of the Series 2018-1 Class A-2-III Notes in 2023 was $227,945. These notes are part of Hardees's financial liabilities, representing a portion of the company's debt obligations. The fair value is an estimate of what these notes could be sold for in the market as of that date.
Understanding the fair value of these notes can provide insight into Hardees's overall financial health and debt management. For a prospective franchisee, this information is relevant because it reflects the financial obligations Hardees has undertaken. While franchisees are not directly responsible for these debts, the financial stability of the franchisor is crucial for the long-term success and support of the franchise system.
The Series 2018-1 Class A-2 Notes were issued in three tranches, with the Class A-2-III tranche having an initial principal amount of $250,000 and a fixed interest rate of 5.710%. These notes have an anticipated repayment date in June 2028 and a final maturity date in June 2048, requiring quarterly principal payments of $2,500. The estimated fair value of $227,945 in 2023 indicates the market's valuation of these notes at that time, which can fluctuate based on various economic factors and the perceived creditworthiness of the issuer.
Prospective franchisees should consider these financial details as part of their due diligence, assessing Hardees's financial stability and its ability to support its franchisees. While the FDD provides this historical financial data, it is advisable to consult with a financial advisor to fully understand the implications of Hardees's debt structure and overall financial condition.