What was the reported value of Hardees' goodwill as of January 31, 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the ingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Nashville, Tennessee Ap
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the company reported goodwill of $539,421 as of January 31, 2025. Goodwill is an intangible asset representing the value of a company's brand reputation, customer relationships, and other factors that contribute to its overall worth beyond its tangible assets. This figure reflects the value Hardees places on these intangible aspects of its business.
For a prospective franchisee, understanding the goodwill value is important because it can indicate the strength and recognition of the Hardees brand. A higher goodwill value often suggests a more established and reputable brand, which can be beneficial for attracting customers and securing financing. However, it's also important to note that goodwill is subject to impairment testing, as mentioned in the FDD, and its value can fluctuate based on various factors, including market conditions and the company's performance.
The FDD also indicates that Hardees performs annual impairment tests for goodwill and indefinite-lived intangible assets. These tests determine whether the fair value of these assets is greater than their carrying value. If the fair value is less than the carrying value, an impairment loss is recorded. In fiscal years 2025 and 2024, Hardees determined that no impairment losses were necessary, suggesting that the fair value of its goodwill remained above its carrying value.
Overall, the reported goodwill value of $539,421 provides a snapshot of Hardees' brand strength and intangible assets as of January 31, 2025. While this figure can be a positive indicator for potential franchisees, it's crucial to consider other factors, such as market trends and the company's financial performance, to gain a comprehensive understanding of the franchise opportunity.