What was the operating lease asset value reported for Hardee's Restaurants LLC?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| | (86,871) | 129,113 | | Long-term debt, less current portion | ' | , | | - 45,715 | , | _ | (80,871) | 1,112,394 | | Finance leases, less current portion | | ' | _ | - - 15,783 | · · · · · · · · · · · · · · · · · · · | _ | _ | 21,279 | | • | | | _ | - 13,783 - 77,068 | | _ | _ | 314,846 | | Operating leases, less current portion | · · · · · · · · · · · · · · · · · · · | | _ | | | | | | | Other long-term liabilities | | | | - 171,552 | | | (9/, 971) | 235,470 | | Total liabilities | 378,238 | 622,0 | - | 310,118 | 589,566 | · | (86,871) | 1,813,102 | | Members' equity (deficit): | 402.261 | (500.0) | 17) | 500.046 | (505.020) | | | (241, 626) | | Members' equity (deficit) | 403,361 | | | 523,849 | | | | (241,636) | | Total liabilities and members' deficit | $ 781,599 | $ 39,14 | | - $ 833,967 | $ 3,627 | | $ (86,871) | $ 1,571,466 |
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING BALANCE SHEET
(In thousands)
| Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities | |
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ 2,117 | $ 3,996 | $ | $ 3,685 | $ 2,542 | $ | $ | $ 12,340 |
| Cash and cash equivalents - restricted | 15,942 | _ | _ | _ | _ | _ | 15,942 | |
| Accounts receivable, net | 11,160 | _ | _ | 10,588 | _ | _ | _ | 21,748 |
| Due from affiliates | 11,625 | 20,328 | _ | 56,241 | 238 | _ | (88,007) | 425 |
| Inventories | 559 | _ | _ | 2,293 | _ | _ | 2,852 | |
| Prepaid expenses | 112 | 22 | _ | 314 | 22 | _ | 470 | |
| Other current assets | 79 | _ | _ | _ | _ | _ | 79 | |
| Total current assets | 25,652 | 40,288 | _ | 73,121 | 2,802 | _ | (88,007) | 53,856 |
| Property and equipment, net | 83,156 | _ | _ | 270,737 | _ | _ | 353,893 | |
| Operating lease assets | 304,577 | _ | _ | 91,121 | _ | _ | _ | 395,698 |
| Intangible assets, net | 378,456 | _ | _ | 399,082 | _ | _ | _ | 777,538 |
| Other assets, net | 16,259 | _ | _ | 15,599 | _ | _ | _ | 31,858 |
| Total assets | $ 808,100 | $ 40,288 | $ | $ 849,660 | $ 2,802 | $ | $ (88,007) | $ 1,612,843 |
| LIABILITIES AND MEMBERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ — | $ 5,900 | $ — | $ | $ 5,900 | $ | $ | $ 11,800 |
| Current portion of finance leases | 698 | _ | _ | 817 | _ | _ | _ | 1,515 |
| Current portion of operating leases | 57,919 | _ | _ | 15,854 | _ | _ | _ | 73,773 |
| Accounts payable | 2,676 | _ | _ | 1,791 | _ | _ | _ | 4,467 |
| Due to affi |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardee's Restaurants LLC reported an operating lease asset value of $91,121. This figure represents the company's rights to use leased assets, primarily real estate for restaurant locations, for the term of the leases. Operating leases are a common arrangement in the restaurant industry, allowing Hardees to expand its footprint without significant capital expenditure on property acquisition.
For a prospective Hardees franchisee, understanding the operating lease asset value is crucial because it reflects the scale of Hardees's lease obligations. While franchisees will enter into their own lease agreements for their individual locations, this aggregate figure provides insight into the company's overall financial strategy and reliance on leased properties. It also indicates the importance of location selection and lease negotiation in the Hardees business model.
It's important to note that this value represents the operating lease assets held directly by Hardee's Restaurants LLC and does not include lease obligations that individual franchisees will incur. Franchisees should carefully review their own lease terms and conduct thorough due diligence on location-specific factors to ensure the financial viability of their Hardees franchise.