Regarding the CKE Restaurants Acquisition, what was the reported value of property and equipment acquired in connection with Hardees restaurants during the year ended January 31, 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Estimated Useful Life | 2025 | 2024 | |
|---|---|---|---|
| Land | Indefinite | $ 190,599 | $ 192,390 |
| Leasehold improvements | 3 - 25 years | 115,242 | 105,359 |
| Buildings and improvements | 3 - 40 years | 171,355 | 191,141 |
| Equipment, furniture and fixtures | 3-8 years | 160,079 | 140,630 |
| Finance leases | 5 - 33 years | 15,173 652,448 | 18,174 647,694 |
| Less accumulated depreciation and amortization (1) | (281,383) |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
Based on the 2025 Hardees Franchise Disclosure Document, during the fiscal year ended January 31, 2024, CKE Restaurants acquired nineteen Hardee's restaurants and one Carl's Jr. restaurant from franchisees. These restaurants were then contributed to the CKE Securitization Entities. The document mentions that legal, travel, and other expenses related to these acquisitions totaled $1,075 during the fiscal year ended January 31, 2024.
However, the 2025 FDD does not explicitly state the value of property and equipment acquired in connection with the Hardees restaurants during the year ended January 31, 2024. The document only mentions the purchase price consideration of $3,342 for nineteen Hardee's restaurants and one Carl's Jr. restaurant, which in combination with certain assets subject to pre-existing relations with these franchisees, results in aggregate consideration transferred for $3,438.
Prospective franchisees should inquire with Hardees about the specific value of property and equipment acquired during the CKE Restaurants Acquisition. Understanding the allocation of costs to different asset categories can help franchisees better assess the financial implications of similar transactions and the overall asset base of the company.