What were the repayments of Class A-2 Notes for Hardees in fiscal year 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
In connection with the amendment of the 2018-1 Variable Funding Notes in fiscal year 2023, we incurred debt issuance costs of $861 which were capitalized. These deferred financing costs will be amortized using the effective interest method over the expected term of the 2018-1 Variable Funding Notes.
Other Notes
In connection with the acquisition of Hardee's restaurants from a franchisee, we assumed a $2,100 unsecured note. On November 20, 2020, we paid down $200. On July 25, 2023, we paid down the remaining $1,900.
We operate on a retail accounting calendar, ending on the last Monday in January. For clarity of presentation, we generally label all years presented as if the fiscal year ended January 31. The fiscal year ended January 30, 2023 is referred to herein as fiscal 2023 or the fiscal year ended January 31, 2023.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, specific repayment amounts for Class A-2 Notes in fiscal year 2023 are not explicitly detailed. However, the document provides information on debt issuance costs related to amendments of certain notes during that year.
Specifically, in connection with the amendment of the 2018-1 Variable Funding Notes in fiscal year 2023, Hardees incurred debt issuance costs of $861, which were capitalized. These costs are to be amortized over the expected term of the 2018-1 Variable Funding Notes. Additionally, Hardees made a payment of $1,900 on July 25, 2023, related to an unsecured note assumed from the acquisition of Hardee's restaurants from a franchisee.
While the FDD does not state the exact Class A-2 note repayments for 2023, it does disclose that the fiscal year ended January 30, 2023, is referred to as fiscal 2023. For a prospective franchisee, it would be prudent to request a detailed breakdown of all Class A-2 Note repayments made during fiscal year 2023 from Hardees to fully understand the company's debt obligations and repayment schedule.