What was the reported operating lease assets for Hardees Restaurants LLC?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| | (86,871) | 129,113 | | Long-term debt, less current portion | ' | , | | - 45,715 | , | _ | (80,871) | 1,112,394 | | Finance leases, less current portion | | ' | _ | - - 15,783 | · · · · · · · · · · · · · · · · · · · | _ | _ | 21,279 | | • | | | _ | - 13,783 - 77,068 | | _ | _ | 314,846 | | Operating leases, less current portion | · · · · · · · · · · · · · · · · · · · | | _ | | | | | | | Other long-term liabilities | | | | - 171,552 | | | (9/, 971) | 235,470 | | Total liabilities | 378,238 | 622,0 | - | 310,118 | 589,566 | · | (86,871) | 1,813,102 | | Members' equity (deficit): | 402.261 | (500.0) | 17) | 500.046 | (505.020) | | | (241, 626) | | Members' equity (deficit) | 403,361 | | | 523,849 | | | | (241,636) | | Total liabilities and members' deficit | $ 781,599 | $ 39,14 | | - $ 833,967 | $ 3,627 | | $ (86,871) | $ 1,571,466 |
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING BALANCE SHEET
(In thousands)
| 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: | ||||||||
| Cash and cash equivalents | $ 2,117 | $ 3,996 | $ | $ 3,685 | $ 2,542 | $ | $ | $ 12,340 |
| Cash and cash equivalents - restricted | 15,942 | _ | _ | _ | _ | _ | 15,942 | |
| Accounts receivable, net | 11,160 | _ | _ | 10,588 | _ | _ | _ | 21,748 |
| Due from affiliates | 11,625 | 20,328 | _ | 56,241 | 238 | _ | (88,007) | 425 |
| Inventories | 559 | _ | _ | 2,293 | _ | _ | 2,852 | |
| Prepaid expenses | 112 | 22 | _ | 314 | 22 | _ | 470 | |
| Other current assets | 79 | _ | _ | _ | _ | _ | 79 | |
| Total current assets | 25,652 | 40,288 | _ | 73,121 | 2,802 | _ | (88,007) | 53,856 |
| Property and equipment, net | 83,156 | _ | _ | 270,737 | _ | _ | 353,893 | |
| Operating lease assets | 304,577 | _ | _ | 91,121 | _ | _ | _ | 395,698 |
| Intangible assets, net | 378,456 | _ | _ | 399,082 | _ | _ | _ | 777,538 |
| Other assets, net | 16,259 | _ | _ | 15,599 | _ | _ | _ | 31,858 |
| Total assets | $ 808,100 | $ 40,288 | $ | $ 849,660 | $ 2,802 | $ | $ (88,007) | $ 1,612,843 |
| LIABILITIES AND MEMBERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ — | $ 5,900 | $ — | $ | $ 5,900 | $ | $ | $ 11,800 |
| Current portion of finance leases | 698 | _ | _ | 817 | _ | _ | _ | 1,515 |
| Current portion of operating leases | 57,919 | _ | _ | 15,854 | _ | _ | _ | 73,773 |
| Accounts payable | 2,676 | _ | _ | 1,791 | _ | _ | _ | 4,467 |
| Due to affi |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, Hardees Restaurants LLC reported operating lease assets of $91,121. This figure is part of the consolidated balance sheet for Hardees and reflects the company's right to use an asset for the lease term. Operating lease assets arise from lease agreements where Hardees is the lessee. These assets are initially measured at the lease liability amount, adjusted for lease payments made at or before the commencement date, plus any initial direct costs, and less any lease incentives received.
For a prospective Hardees franchisee, understanding the operating lease assets of Hardees Restaurants LLC provides insight into the company's financial obligations and how it manages its lease agreements. It's important to note that these assets represent the value of the company's right to use leased properties, which are essential for restaurant operations. The value of operating lease assets can be influenced by factors such as lease terms, rental rates, and the number of leased locations.
Franchisees should consider how Hardees manages its lease obligations, as this can impact the overall financial health and stability of the company. Reviewing the notes to the financial statements, particularly those related to lease commitments, can provide additional context and information about the company's leasing strategies and potential risks. Additionally, understanding the distinction between operating leases and finance leases is crucial, as they are accounted for differently and can have varying impacts on the balance sheet.