What is the general estimated useful life of Hardees restaurants on owned property for impairment analysis purposes?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
We generally estimate the useful life of restaurants on owned property to be 20 to 40 years and estimate the useful life of restaurants subject to leases to range from the end of the lease term then in effect to the end of such lease term including option periods.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, when evaluating the potential impairment of restaurant-level assets, Hardees estimates the useful life of restaurants on owned property to be between 20 and 40 years. This estimate is used to project future cash flows and assess the recoverability and fair value of the assets.
This means that Hardees considers a restaurant on owned property to have a useful life within this range for accounting and financial analysis purposes. This range reflects the period over which Hardees expects to generate economic benefits from the restaurant. The estimated useful life is a key factor in determining whether the carrying value of the restaurant assets is recoverable.
For a prospective franchisee, this information is relevant because it provides insight into how Hardees assesses the long-term value of its restaurants. Understanding these estimates can help franchisees evaluate the potential return on investment and the factors that could impact the financial performance of their Hardees location. It's important to note that these are estimates and actual useful lives may vary based on various factors, including market conditions, maintenance, and other operational considerations.