What was the provision for credit losses for Hardees in fiscal year 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ive tax rate reconciliation. The standard also requires annual disclosure of income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual reporting periods beginning after December 15, 2024 for public entities. For other entities, the standard is effective for annual reporting periods beginning after December 15, 2025. Early a
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the provision for credit losses in fiscal year 2024 was $2,133. This figure represents the amount Hardees set aside to cover potential losses from franchisees who may not be able to meet their financial obligations.
Credit losses can arise from franchisees' inability to pay royalties, franchise fees, or rent. Hardees actively manages this risk by monitoring franchisees' financial health and taking actions to mitigate potential losses. These actions can include reducing or deferring royalties or rent, invoking personal guarantees, or, if necessary, acquiring the restaurants or terminating the franchise agreement.
The allowance for credit losses is a key indicator of the financial stability of Hardees's franchise system. A higher provision may indicate increased risk in the franchisee network, while a lower provision may suggest a healthier franchisee base. Prospective franchisees should consider this information when evaluating the overall financial health and stability of the Hardees franchise system.