What was the reported total of other long-term liabilities for Hardees as of January 31, 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
obligations are as follows:
| 2025 | $ 16,202 |
|---|---|
| 2026 | 16,212 |
| 2027 | 16,410 |
| 2028 | 17,250 |
| 2029 | 17,813 |
| Thereafter | 66,043 |
| Total minimum lease payments | 149,930 |
| Less amount representing interest | (32,652) |
| Residual property obligation (1) , deferred financing costs and deferred sales proceeds | 102,346 |
| Financing method sale-leaseback liability | 219,624 |
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 as of January 31, 2023, was $277,497. This figure represents the sum of several specific long-term liabilities, including 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.
For a prospective Hardees franchisee, understanding the composition and magnitude of these long-term liabilities is crucial. These liabilities reflect obligations that Hardees has extended over a period longer than one year. The sale-leaseback liability likely arises from Hardees selling properties and then leasing them back, while deferred franchise and development fees could relate to revenue recognized over time from franchise agreements. The self-insurance liability suggests Hardees self-insures against certain risks, and this represents the estimated future claims. Deferred beverage income may be related to advanced payments received for beverage sales.
The presence and size of these liabilities can impact Hardees's financial flexibility and its ability to invest in growth or support its franchisees. While these liabilities are on Hardees's balance sheet and not directly the franchisee's, they provide insight into the financial strategies and obligations of the franchisor. Franchisees should consider these figures as part of their overall assessment of the financial health and stability of Hardees.
It is also worth noting the individual components that make up the total other long-term liabilities. As of January 31, 2023, these included a financing method sale-leaseback liability of $219,707, deferred franchise and development fees of $32,566, an estimated liability for self-insurance of $12,183, deferred beverage income of $3,645, unfavorable lease agreements of $6,911, and other liabilities totaling $2,485. Reviewing these individual line items provides a more detailed understanding of the obligations Hardees carries on its balance sheet.