What is the total amount of Hardees' future minimum lease payments as of January 31, 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
s are reported as owned assets and depreciated over their remaining useful lives. Rent payments for these leases are recorded as principal and interest. The net book value of the associated assets, which is included in property and equipment, net of accumulated depreciation and amortization, in our accompanying Consolidated Balance Sheets was $115,805 and $117,126 as of January 31, 2024 and 2023, respectively.
During fiscal 2023, the lease agreements for two of our restaurant properties were terminated. As we no longer have continuing involvement in the properties, we recognized a net gain of $1,160 asso
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total minimum lease payments as of January 31, 2025, are $149,930. This figure represents the cumulative amount of lease payments Hardees expects to make over the coming years, encompassing obligations for 2025 through periods thereafter. This total does not reflect deductions for interest or other financial adjustments.
The breakdown of these lease payments includes specific amounts for each of the next five years, followed by a lump sum for all subsequent years. For instance, the minimum lease payment for 2025 is projected to be $16,202, increasing slightly to $16,212 in 2026, and then to $16,410 in 2027. The amounts continue to rise, reaching $17,250 in 2028 and $17,813 in 2029. Lease payments categorized as 'Thereafter' amount to $66,043.
It's important to note that the total minimum lease payments of $149,930 are subject to certain deductions. Specifically, an amount representing interest, totaling $32,652, is subtracted from the gross figure. Additionally, there are considerations for residual property obligations, deferred financing costs, and deferred sales proceeds, which amount to $102,346. Furthermore, the financing method sale-leaseback liability is $219,624, less a current portion of $11,287, resulting in a net liability of $208,337. These figures provide a comprehensive view of Hardees's lease-related financial obligations and liabilities as of the specified date.