What was the total facility action charges, net, for Hardees in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ingencies to determine the adequacy of our accruals and related disclosures. The ultimate amount of loss may differ from these estimates.
NOTE 15 — FRANCHISE OPERATIONS
Franchised restaurants and other revenue consisted of the following:
| Royalties | $ | 190,783 | $ | 190,073 | |
|---|---|---|---|---|---|
| Rent and other occupancy | 94,420 | 100,611 | |||
| Franchise fees | 5,395 | 4,917 | |||
| Other | 7,676 | 4,353 | |||
| Total franchised restaurants and other revenue | $ | 298,274 | $ | 299,954 |
Franchised restaurants and other expense consisted of the following:
| | Fiscal 2025 | Fiscal | 2024 | |--
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, facility action charges, net, include several components such as closed store expenses, impairment of assets, gains or losses, and gains on refranchising transactions.
For fiscal year 2025, the components of facility action charges, net, include closed store expenses of $2,197, impairment of assets to be held and used of $1,667, impairment of assets to be disposed of of $1,273, other losses (gains), net of $28, gain on disposal of other property and equipment of $(3,869), and gain on early termination of lease agreement associated with a financing method sale-leaseback restaurant property of $(1,086). There is no listed gain on refranchising transaction for fiscal year 2025.
These figures represent the financial impact of actions Hardees takes related to its facilities, such as closing stores, recognizing impairment of assets, and gains or losses from the disposal of property and equipment. Prospective franchisees should understand that these charges can fluctuate from year to year and can significantly impact the company's financial performance. Reviewing these charges can provide insight into Hardees's strategy regarding underperforming locations and asset management.