As of January 31, 2025, who is the sole stockholder of CKE, the parent company of Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
CKE Holdings LP, a limited partnership (the "Partnership") that was formed by Roark Capital Management, LLC ("Roark") and certain members of our senior management team and Board of Directors in December 2013, is CKE's sole stockholder as of January 31, 2025 and 2024. The Limited Partnership Agreement, as amended ("Limited Partnership Agreement"), allows for the issuance of profit sharing interests ("Units") in the Partnership in the form of "Class B" and "Class C" Units. The Units provide the holders a profit sharing interest in the Partnership as defined in the partnership agreement and the individual grant agreements. There are no income tax benefits associated with any of the Class B Units or Class C Units.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, as of January 31, 2025, CKE Holdings LP is the sole stockholder of CKE Restaurants. CKE Holdings LP is a limited partnership that was formed in December 2013 by Roark Capital Management, LLC, certain members of Hardees's senior management team, and its Board of Directors.
The limited partnership agreement allows for the issuance of profit-sharing interests referred to as "Units" in the form of "Class B" and "Class C" Units. These units provide holders with a profit-sharing interest in the Partnership, as defined in the partnership agreement and individual grant agreements. It's important to note that there are no income tax benefits associated with either Class B or Class C Units.
Class B Units vest over time in four equal annual installments from the grant date, while some may vest or convert to a time-vesting schedule upon achieving specific financial or investment targets. Class C Units vest in various installments, as specified in individual grant agreements, but always within a maximum of five years from the grant date. As of January 31, 2025, there were no unvested time-vesting or performance-vesting Class B Units.
Franchisees researching Hardees should understand the ownership structure of the parent company, as this can influence the strategic direction and financial decisions of the franchise system. The presence of private equity firms like Roark Capital Management is common in the franchise industry, and their involvement can bring both benefits (such as access to capital and management expertise) and potential risks (such as a focus on short-term profitability).