What was the reported total of other long-term liabilities for Hardees in 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Financing method sale-leaseback liability, long-term portion | $ 208,337 | $ 219,707 |
| Deferred franchise and development fees | 32,487 | 32,566 |
| Estimated liability for self-insurance, long-term portion | 9,568 | 12,183 |
| Deferred beverage income | 5,721 | 3,645 |
| Unfavorable lease agreements | 4,480 | 6,911 |
| Other | 3,038 | 2,485 |
| Total other long-term liabilities | $ 263,631 | $ 277,497 |
| 2024 | 2023 | |
|---|---|---|
| Financing method sale-leaseback liability, long-term portion | $ 208,337 | $ 219,707 |
| Deferred franchise and development fees | 32,487 | 32,730 |
| Deferred beverage income | 5,721 | 3,645 |
| Unfavorable lease agreements | 4,132 | 6,320 |
| Other | 124 | 108 |
| Total other long-term liabilities | $ 250,801 | $ 262,510 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total of other long-term liabilities for 2023 was reported in two separate tables. One table lists the total as $277,497, while the other lists it as $262,510. These liabilities include several components such as financing method sale-leaseback liability, deferred franchise and development fees, estimated liability for self-insurance, deferred beverage income, unfavorable lease agreements, and other miscellaneous items.
The discrepancies between the two tables suggest that there may be different accounting methods or categorizations used within Hardees's financial reporting. It is important to note that these figures represent the company's overall long-term liabilities, not necessarily those of an individual franchise.
A prospective Hardees franchisee should seek clarification from the franchisor regarding these differing figures to understand the composition and implications of these liabilities. Understanding the nature of these liabilities can help a franchisee assess the financial stability of the company and potential risks associated with the franchise investment.