What was the reported total operating lease cost for Hardees in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fiscal 2025 | Fiscal 2024 | |
|---|---|---|
| Rent expense: | ||
| Operating lease cost | (88,491) | (92,340) |
| Variable lease cost | (1,593) | (1,854) |
| Total operating lease cost | (90,084) | (94,194) |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total operating lease cost for fiscal year 2025 was $90,084. This figure includes both the operating lease cost of $88,491 and the variable lease cost of $1,593.
For a prospective Hardees franchisee, understanding these lease costs is crucial. Operating leases typically cover the use of property and equipment, while variable lease costs can fluctuate based on factors like sales performance. The total operating lease cost represents a significant expense that will impact the franchisee's profitability.
It's important to note that these figures reflect Hardees's overall operating lease expenses, and an individual franchisee's costs may vary depending on their specific location, lease terms, and sales volume. Franchisees should carefully review their lease agreements and consider these costs when projecting their potential earnings. Comparing these figures with previous years, such as the $94,194 in 2024, can also provide insights into trends in Hardees's leasing expenses.