What was the reported net value of Hardees' intangible assets as of January 31, 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the ingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Nashville, Tennessee Ap
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the net value of intangible assets as of January 31, 2025, was reported as $760,749. The FDD also provides the corresponding value from the previous year, January 31, 2024, which was $777,538. This indicates a decrease in the net value of intangible assets from 2024 to 2025.
Intangible assets typically include items like trademarks, patents, and franchise agreements, which are not physical but have monetary value. The net value represents the original cost of these assets less any accumulated amortization (the systematic reduction of the asset's value over its useful life) or impairment charges (a write-down when the asset's fair value falls below its carrying value).
For a prospective Hardees franchisee, this information provides insight into the financial health and asset management of the franchisor. While a decrease in intangible assets might raise questions, it is essential to consider the context. Factors such as amortization, asset sales, or impairment adjustments could explain the change. It's also worth noting that Hardees performed annual impairment tests for goodwill and indefinite-lived intangible assets and recorded no impairment losses in fiscal years 2025 or 2024.
It would be prudent for a potential franchisee to inquire about the specific components of Hardees' intangible assets and the reasons for any significant changes in value. Understanding the nature and stability of these assets can help in assessing the long-term viability and brand strength of the franchise system.