What was the total amount of minimum lease payments for Hardees' Company-Operated operating leases in 2027?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Finance Leases | Operating Leases | ||||||
|---|---|---|---|---|---|---|---|
| ompany- Operated | F | ranchise & Other | Company- Operated | anchise & Other | |||
| Fiscal: | |||||||
| 2025 | $ 1,573 | $ | 1,501 | $ | 15,730 | $ | 70,729 |
| 2026 | 1,629 | 1,426 | 14,906 | 63,671 | |||
| 2027 | 1,658 | 1,358 | 13,995 | 54,043 | |||
| 2028 | 1,672 | 1,302 | 12,851 | 45,818 | |||
| 2029 | 1,684 | 1,161 | 11,193 | 35,269 |
| Finance Leases | Operating Leases | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · | Company- Operated | F | Franchise & Other | Company- Operated | F | ranchise & Other | ||||||||
| Fiscal: | ||||||||||||||
| 2026 | $ | 1,593 | $ | 1,304 | $ | 16,542 | $ | 69,475 | ||||||
| 2027 | 1,617 | 1,245 | 15,644 | 61,728 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the total amount of minimum lease payments for Company-Operated operating leases in 2027 was $13,995 according to one table. However, another table shows that the total amount of minimum lease payments for Company-Operated operating leases in 2027 was $15,644.
These figures represent Hardees' financial obligations for leases of properties where they operate company-owned restaurants. For a prospective franchisee, understanding these lease commitments is crucial as it provides insight into the financial health and stability of Hardees' corporate operations. While franchisees will be responsible for their own leases, the company's lease obligations can indicate potential risks or opportunities within the franchise system.
The discrepancy between the two tables could be due to different accounting methods, the inclusion of different types of leases, or revisions made during the FDD preparation. It is important to note that these figures do not represent the lease obligations of franchised locations, but rather those locations operated directly by Hardees. Franchisees should seek clarification from Hardees regarding these differences and understand the factors that influence lease commitments.
Prospective franchisees should inquire about the specific types of leases included in these figures, the terms of those leases, and any potential risks associated with Hardees' lease obligations. Understanding these commitments can help franchisees assess the overall financial stability of the Hardees organization and make informed decisions about their investment.