What was the reported cash and cash equivalents for Hardees Funding LLC?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
855 | $ | 59,155 | | Income taxes | | 6,390 | | 5,737 | | Non-cash activities: | | | | | | Operating lease assets obtained in exchange for new operating lease liabilities | | 53,232 | | 65,562 | | Contributed property and equipment (1) | | 30,130 | | 28,511 | | Contributed other assets (1) | | 6,681 | | 3,730 | | Contributed assets for the CKE Restaurants Acquisition (see Note 5) (1) | | 111 | | 3,438 |
(1) Contributed property and equipment, contributed other assets and contributed assets for the CKE Restaurants Acquisition represent assets purchased by CKE Restaurants and certain of its wholly owned subsidiaries on behalf of the CKE Securitization Entities pursuant to the Management Agreement. For accounting purposes, these purchases are treated as non-cash contributions to the CKE Securitization Entities.
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING BALANCE SHEET (In thousands)
January 31, 2025
| 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: | ф 1.24 7 | -a • | - $ 3.393 | , e 2.20 5 | Ф | s | e 10.501 | |
| Cash and cash equivalents | 52 $ — | - $ 3,397 | 7 $ 3,385 | » — | » — | $ 10,581 | ||
| Cash and cash equivalents - restricted | 18,1 | - - | _ | _ | 18,147 | |||
| Accounts receivable, net | , | - 12,702 | _ | (06, 071) | 23,790 | |||
| Due from affiliates | * | * | - 57,488 | _ | (86,871) | 2,458 | ||
| Inventories | - 2,459 | _ | _ | 2,987 | ||||
| Prepaid expenses | - 539 | _ | _ | 721 | ||||
| Other current assets | _ | |||||||
| Total current assets | · · · · · · · · · · · · · · · · · · · | 14 | - 76,585 | , | _ | (86,871) | 58,684 | |
| Property and equipment, net | · · · · · · · · · · · · · · · · · · · | - 259,388 | _ | _ | 343,242 | |||
| Operating lease assets | · · · · · · · · · · · · · · · · · · · | - 87,023 | _ | _ | 370,418 | |||
| Intangible assets, net | - 388,702 | _ | _ | 760,749 | ||||
| Other assets, net | 16,104 | - 22,269 | 38,373 | |||||
| Total assets | $ 781,599 | $ 39,14 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, Hardee's Funding LLC reported cash and cash equivalents of $977 in one financial statement and $2,542 in another. It is important to note that these figures represent the cash and cash equivalents held by Hardee's Funding LLC, which is a specific entity within the Hardees franchise system, and may not reflect the overall financial health of the entire Hardees organization.
For a prospective franchisee, this information provides insight into the financial resources directly available to Hardee's Funding LLC. This can be relevant when assessing the financial stability of the entity and its ability to support franchisees. Understanding the cash position of Hardee's Funding LLC can help franchisees evaluate the potential risks and benefits associated with investing in a Hardees franchise.
It's crucial for potential franchisees to investigate the reasons for the difference in cash and cash equivalents between the two reported figures. Further due diligence, including a review of the complete financial statements and discussions with the franchisor, is recommended to gain a comprehensive understanding of the financial condition of Hardees Funding LLC and its implications for franchisees.