What is the net carrying amount for Hardees' franchise agreements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Weighted- Average Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |
|---|---|---|---|---|---|---|---|
| Trademarks / tradenames | Indefinite | $ 614,400 | $ — | $ 614,400 | $ 614,400 | $ | $ 614,400 |
| Franchise agreements | 20 | 321,665 | (176,641) | 145,024 | 321,665 | (160,157) | 161,508 |
| Favorable lease agreements | 17 | 5,429 | (4,104) | 1,325 | 5,875 | (4,245) | 1,630 |
| Total intangible assets | $ 941,494 | $ (180,745) | $ 760,749 | $ 941,940 | $ (164,402) | $ 777,538 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the net carrying amount for franchise agreements is presented in the financial statements. The net carrying amount represents the value of these agreements after accounting for accumulated amortization, which reflects the expense of using the asset over its useful life.
In 2024, the net carrying amount for Hardees' franchise agreements was $161,508. This is calculated from a gross carrying amount of $321,665 less accumulated amortization of $160,157. In 2023, the net carrying amount was $176,555, derived from a gross carrying amount of $319,855 less accumulated amortization of $143,300.
These figures are important for prospective franchisees as they provide insight into how Hardees values its franchise agreements on its balance sheet. Monitoring these values over time can indicate the stability and potential profitability of the franchise system. A higher net carrying amount might suggest stronger franchise agreements and better long-term value for franchisees. Conversely, a declining net carrying amount could signal potential issues within the franchise system that warrant further investigation.