What is the total amount representing interest for operating leases related to Franchise & Other Hardees locations, according to the financial statements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
---|-------| | Assets to be held and used (Level 3) (2) | $ | $ | 1,044 |
(1) Represents the impairment of long-lived assets including property & equipment, net and operating lease assets for multiple domestic company-operated closed restaurants.
NOTE 14 — COMMITMENTS AND CONTINGENT LIABILITIES
Lease Commitments
Many of the restaurants we have sold to franchisees are on leased sites, and we have entered into sublease agreements with these franchisees but remained pr
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
I am unable to provide the exact figure for the total amount representing interest for operating leases related to Franchise & Other Hardees locations, as the provided excerpts from the 2025 FDD do not explicitly state this amount.
However, the FDD does contain information on lease commitments and letters of credit. Specifically, it mentions that many restaurants sold to franchisees are on leased sites, with Hardees remaining principally liable for the lease obligations. The nominal value of these lease obligations as of January 31, 2025, is stated in one excerpt as $400,271 and in another as $409,868. Additionally, Hardees had letters of credit outstanding, including a $15,150 letter of credit for the benefit of the holders of Senior Notes as an interest reserve.
To obtain the specific figure for interest on operating leases, a prospective franchisee should carefully review the complete financial statements within Item 21 of the 2025 Hardees FDD. It would also be prudent to directly ask Hardees's franchise representatives for clarification on this matter, ensuring a full understanding of all lease-related financial obligations.