What was the total finance lease cost for Hardees in fiscal year 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ed as lease receivables and are included in accounts receivable, net and other assets, net in our accompanying Consolidated Balance Sheets. As of January 31, 2024, future minimum lease and sublease rent revenue expected to be received, are as follows:
| Finance Leases | Operating Leases | ||||||
|---|---|---|---|---|---|---|---|
| Subleases | Subleases | Owned Properties | |||||
| Fiscal: |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total finance lease cost for fiscal year 2023 was $3,907. This figure is comprised of several components: amortization of finance lease assets, interest on finance lease liabilities, and variable lease costs.
Specifically, the amortization of finance lease assets amounted to $2,432, while the interest on finance lease liabilities was $1,302. The variable lease cost was $173. These individual costs, when combined, result in the total finance lease cost of $3,907 for Hardees during fiscal year 2023.
Prospective franchisees should understand that finance leases represent a significant financial obligation. These leases involve Hardees essentially financing the asset over its useful life, and the costs include not only the depreciation of the asset but also the interest paid on the financing. Variable lease costs can fluctuate based on usage or other factors, adding an element of unpredictability to these expenses. Therefore, understanding the terms and conditions of any finance leases is crucial for managing the financial health of a Hardees franchise.