What were the finance leases for Hardees in the second period presented in the financial statements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
7,853 | | | | | | 2029 | 97 | 42,996 | 7,129 | | | | | | Thereafter | 202 | 123,329 | 45,439 | | | | | | Total future minimum lease and sublease rent revenue | 1,193 | $ 432,506 | $ 84,409 | | | | | | Unearned interest income | (229) | | | | | | | | Present value of leases receivable | 964 | | | | | | | | Less current portion | (180) | | | | | | | | Leases receivable, less current portion | $ 784 | | | | | | |
Company as Lessee
The components of lease cost for January 31, 2024 and are as follows:
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Finance lease cost: | ||
| Amortization of finance lease assets | $ 1,596 | $ 2,432 |
| Interest on finance lease liabilities | 1,572 | 1,302 |
| Variable lease cost | 2 | 173 |
| Total finance lease cost | 3,170 | 3,907 |
| Operating lease cost | 92,340 | 93,249 |
| Variable lease cost | 1,854 | 1,391 |
| Total operating lease cost | 94,194 | 94,640 |
| Total lease cost | $ 97,364 | $ 98,547 |
Minimum lease payments for all leases and
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the finance leases for the second period, which is fiscal year 2026, are detailed in the financial statements. For company-operated locations, the finance leases are projected to be $1,629, while for franchise and other locations, they are projected to be $1,426.
These figures represent Hardees's financial obligations under lease agreements where the company essentially owns the asset over the lease term. For prospective franchisees, understanding these lease obligations is crucial as it reflects the long-term financial commitments Hardees has made.
Reviewing these figures allows potential franchisees to assess the financial health and stability of Hardees. It's important to note that these are projections and actual figures may vary. Franchisees should consult with financial advisors to fully understand the implications of these finance leases on Hardees's overall financial performance.