What is the 'Lease obligations, less current portion' for Company-Operated Operating Leases at Hardees?
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 'Lease obligations, less current portion' for Company-Operated Operating Leases is $91,971. This figure represents the present value of the minimum lease payments for operating leases, after deducting both the amount representing interest and the current portion of the lease obligations.
In simpler terms, this is the long-term debt Hardees has for leases on properties they operate themselves, not including the interest they will pay over time or the portion of the lease due within the next year. This number is important for understanding Hardees's financial commitments and how much they owe in future lease payments for their company-operated locations.
A prospective franchisee should be aware that this figure reflects Hardees's obligations as a company and not necessarily the lease terms a franchisee would encounter. However, understanding the franchisor's lease obligations can provide insight into their overall financial health and approach to real estate management.