What was the reported value of deferred franchise and development fees for Hardees in 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2026 | $ 16,074 |
|---|---|
| 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-leaseback liability, less current portion | $ 196,207 |
(
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the deferred franchise and development fees reported for 2024 were $32,487. This figure represents the amount of franchise and development fees that Hardees has collected but not yet recognized as revenue on its income statement. These fees are typically deferred and recognized over the term of the franchise agreement as Hardees provides ongoing services and support to its franchisees.
For a prospective Hardees franchisee, this deferred revenue indicates the financial obligations Hardees has to its existing franchisees. It reflects the services and support Hardees is expected to provide in the future in exchange for the initial franchise and development fees. This can include training, marketing assistance, and operational support.
It's important to note that this figure is just one component of Hardees's overall financial picture. A prospective franchisee should carefully review Hardees's complete financial statements, including the balance sheet, income statement, and cash flow statement, to gain a comprehensive understanding of the company's financial health and performance. Additionally, it would be prudent to compare these figures with those of other similar franchise systems to assess Hardees's relative financial position.