What was the gross carrying amount of Hardees' total intangible assets in the financial statements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Operations.
Refranchising Transaction
During fiscal 2024, we sold one Hardee's restaurant and certain related inventory and fixed assets with a net book value of $1,267 and disposed of its allocated goodwill of $662. In connection with the sale of this restaurant, we received aggregate consideration of $2,082, and recognized a net gain of $153, which is included in facility action charges, net, in our
accompanying Consolidated Statements of Operations. In connection with the refranchising transaction, the franchisee acquired real property and equipment related to the restaurant location.
NOTE 6 — GOODWILL AND INTANGIBLE ASSETS, NET
During the fourth quarter of fiscal 2025 and 2024, we performed our annual impairment tests for goodwill and indefinite-lived intangible assets using a qualitative approach and determined
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the company's financial statements include details on intangible assets. The gross carrying amount of total intangible assets was $941,494 and $941,940 as of January 31, 2025 and January 31, 2024, respectively. These assets include trademarks/tradenames, franchise agreements, and favorable lease agreements.
The trademarks/tradenames had a gross carrying amount of $614,400 in both 2025 and 2024. Franchise agreements were valued at $321,665 for both years. Favorable lease agreements were valued at $5,429 in 2025 and $5,875 in 2024.
It is important to note that these values are before accumulated amortization, which represents the amount of the asset's cost that has been expensed over time. The net carrying amount, which is the gross carrying amount less accumulated amortization, provides a more accurate picture of the asset's current value on Hardees's balance sheet. These figures are important for prospective franchisees to understand the financial health and asset valuation of Hardees.