What is included in the definition of 'Revenue' for the Hardees financial performance representation?

According to Hardees's 2025 Franchise Disclosure Document, revenue, for the purposes of the financial performance representation, encompasses all income derived from the sale of services and products, excluding HR-approved promotional items. It also includes all other income, irrespective of its nature. This encompasses both cash and credit transactions, with revenue recognized even in credit sales, regardless of whether collection has occurred.

However, there are specific exclusions to this definition. Revenue does not include sales taxes or other taxes that the franchisee collects from customers on behalf of the appropriate taxing authority. Additionally, revenue from the sale of stored value gift cards or gift certificates is excluded, although revenue is included when these gift certificates are redeemed or the stored value gift cards are debited.

This definition is important for prospective Hardees franchisees as it clarifies what income is considered when evaluating the financial performance of existing locations. Understanding what constitutes 'revenue' allows franchisees to accurately compare their potential earnings against the figures presented in Item 19 of the FDD and to develop realistic financial projections for their own Hardees franchise.