What was the total amount of Hardees' closed store expenses in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
The Shanghai, China business ("Shanghai business") was established for the purpose of locating, developing and operating Carl's Jr. restaurants within the municipality of Shanghai, China and certain nearby provinces. During the fiscal year ended January 31, 2023, the Company closed all restaurants operated by our Shanghai business. During the fiscal year ended January 31, 2025, the Company liquidated the Shanghai business.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
I am unable to provide the exact figure for Hardees' closed store expenses in fiscal year 2025, as this specific financial data is not present within the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do contain information regarding the closure of the Shanghai business in fiscal year 2023 and its liquidation in fiscal year 2025, but it does not specify the associated costs. The document also discusses refranchising transactions and the sale of a Hardee's restaurant in fiscal year 2024, but this is not directly related to closed store expenses in 2025.
While the excerpts provide details on acquisitions, advertising expenses, and other financial activities, they do not break down the costs associated with store closures. The financial statements included in Item 21 offer a broad overview of CKE Restaurants' financial performance, but lack the granular detail needed to isolate closed store expenses for Hardees specifically. The notes discuss topics such as variable interest entities, acquisitions, and advertising, but these sections do not address the costs of closing stores.
To obtain the specific figure for Hardees' closed store expenses in fiscal year 2025, a prospective franchisee should carefully review the complete audited financial statements within the FDD. It would also be prudent to directly ask the franchisor for a detailed breakdown of these expenses during the due diligence process. Understanding these costs is crucial for assessing the overall financial health of the franchise system and the potential risks associated with underperforming locations.