What is the total amount of minimum lease payments for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ook value of the associated assets, which is included in property and equipment, net of accumulated depreciation and amortization, in our accompanying Combined 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 involvement in the properties, we recognized a net gain of $1,160 associated with the write-off of the assets and liabilities. The net gain is included in facility action charges, net in our accompanying Combined Consolidated State
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the company has future minimum lease commitments for financing method sale-leaseback obligations. As of January 31, 2025, the total minimum lease payments are detailed for the years 2025 through 2029, with a lump sum for payments thereafter.
Specifically, the minimum lease payments are as follows: $16,202 in 2025, $16,212 in 2026, $16,410 in 2027, $17,250 in 2028 and $17,813 in 2029. Lease payments listed thereafter amount to $66,043. Summing these individual values, the total minimum lease payments add up to $149,930.
It is important to note that this total includes both principal and interest. The amount representing interest, which totals $32,652, is subtracted from the total minimum lease payments to arrive at the residual property obligation, deferred financing costs, and deferred sales proceeds, which amount to $102,346. Additionally, the financing method sale-leaseback liability is $219,624, which is reduced by the current portion of $11,287, resulting in a financing method sale-leaseback liability, less current portion, of $208,337.