To whom does Hardees make income tax payments?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
We are included in the consolidated federal income tax returns and combined state income tax returns of CKE Holding Corporation. For the purpose of determining the income taxes attributable to CKE Restaurants and its subsidiaries, we prepare our income tax provision as if we were a separate taxpayer. As a result of this treatment, we make income tax payments to our corporate parent based upon our separate return taxable income. We additionally make income tax payments directly to federal, state, local and foreign taxing jurisdictions.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees makes income tax payments to two entities. First, Hardees makes income tax payments to its corporate parent, CKE Holding Corporation, based upon Hardees's separate return taxable income. Second, Hardees makes income tax payments directly to federal, state, local, and foreign taxing jurisdictions.
For a prospective franchisee, this means that Hardees's tax obligations are handled at the corporate level, with payments distributed between the parent company and various government tax entities. This arrangement is not uncommon in franchise systems, as it centralizes tax management and leverages the resources of the parent company.
It is important to note that Hardees is included in the consolidated federal and combined state income tax returns of CKE Holding Corporation. However, for determining income taxes attributable to Hardees and its subsidiaries, the company prepares its income tax provision as if it were a separate taxpayer. This distinction is crucial for understanding how Hardees calculates its tax liabilities and allocates payments.