What was the total amount of trade receivables for Hardees as of January 31, 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total accounts receivable, net, for the company as of January 31, 2024, was $38,438. This represents the amount of money owed to Hardees by its customers or franchisees for goods or services that have been delivered or used but not yet paid for. Accounts receivable is considered a current asset, reflecting its short-term nature, as it is expected to be converted into cash within one year.
For a prospective Hardees franchisee, understanding the accounts receivable is crucial for assessing the financial health and operational efficiency of the franchise system. A high accounts receivable balance might indicate potential issues with collecting payments from customers or franchisees, which could impact cash flow. Conversely, a low balance suggests efficient collection practices and strong financial management.
It's important to note that this figure represents the consolidated accounts receivable for the entire Hardees system, not just an individual franchise location. A franchisee's own accounts receivable will depend on their specific sales, payment terms, and collection efforts. Reviewing these figures in the FDD provides a benchmark for understanding the overall financial performance of Hardees and its franchisees.