What was the reported total of other long-term liabilities for Hardees in 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------------------------------------------------------|-----------| | 2027 | 16,267 | | 2028 | 17,099 | | 2029 | 17,661 | | 2030 | 17,666 | | Thereafter | 48,094 | | Total minimum lease payments | 132,861 | | Less amount representing interest | (26,955) | | Residual property obligation (1) , deferred financing costs and deferred sales proceeds | 101,959 | | Financing method sale-leaseback liability | 207,865 | | Less current portion | (11,658) | | Financing method sale-leasebac
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total other long-term liabilities for 2024 was $263,631. This figure represents the sum of several specific long-term liabilities, providing a comprehensive view of Hardees's financial obligations extending beyond the upcoming year. These liabilities include financing method sale-leaseback liability, deferred franchise and development fees, estimated liability for self-insurance, deferred beverage income, unfavorable lease agreements, and other miscellaneous long-term liabilities.
The individual components contributing to the total other long-term liabilities in 2024 are as follows: financing method sale-leaseback liability ($208,337), deferred franchise and development fees ($32,487), estimated liability for self-insurance ($9,568), deferred beverage income ($5,721), unfavorable lease agreements ($4,480), and other liabilities ($3,038). These figures offer insight into the nature of Hardees's long-term financial commitments and how they are structured.
Prospective franchisees should understand the nature of these liabilities, as they reflect Hardees's financial strategy and obligations. While these are the liabilities of the franchisor, understanding the franchisor's financial health is crucial for franchisees. A significant change in these liabilities from year to year could signal shifts in Hardees's financial strategies or overall financial health, which could indirectly affect franchisees. Therefore, reviewing these figures in the FDD provides valuable context for assessing the stability and financial management of the Hardees franchise system.