What was the Hardees' operating lease cost for fiscal year 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ed as lease receivables and are included in accounts receivable, net and other assets, net in our accompanying Consolidated Balance Sheets. As of January 31, 2024, future minimum lease and sublease rent revenue expected to be received, are as follows:
| Finance Leases | Operating Leases | ||||||
|---|---|---|---|---|---|---|---|
| Subleases | Subleases | Owned Properties | |||||
| Fiscal: |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the operating lease cost for fiscal year 2023 was $93,249. This figure represents the expense Hardees incurred for the use of properties under operating leases during that fiscal year. Operating leases are rental agreements where Hardees does not assume the risks or rewards of ownership of the underlying asset.
In addition to the operating lease cost, Hardees also incurred variable lease costs of $1,391, bringing the total operating lease cost to $94,640 for fiscal year 2023. Variable lease costs are those that fluctuate based on factors such as usage or sales. These costs are separate from finance lease costs, which relate to leases where Hardees essentially owns the asset over the lease term.
Prospective Hardees franchisees should understand the difference between operating and finance leases, as well as the impact of variable lease costs, when evaluating the financial performance of the company. These lease costs can significantly impact the profitability of a Hardees franchise, and understanding their nature and magnitude is crucial for financial planning and forecasting.