What was the total income tax expense for Hardees in Fiscal Year 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
of consulting fees, which are included in general and administrative expense in our accompanying Consolidated Statements of Operations for fiscal 2024 and 2023, respectively.
The management advisory and consulting services agreement also provides that Roark may earn future fees in connection with certain business acquisition transactions, an initial public offering or a change of control transaction. The management advisory and consulting services agreement includes customary exculpation and indemnification provisions in favor of Roark and its affiliates.
NOTE 20 — INCOME TAXES
Income tax expense consisted of the following:
| | Fiscal 2024 | Fiscal 2023 | |-----
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total income tax expense for fiscal year 2023 was $8,865. This figure is detailed in the Consolidated Statements of Operations, which outlines the revenues, expenses, and income taxes for both company-operated and franchised Hardees restaurants. The document provides a breakdown of how this total is derived, including factors such as the statutory tax rate, state income taxes, and other adjustments.
Specifically, the FDD includes a reconciliation of income tax expense at the federal statutory rate of 21.0% to the actual income tax expense for fiscal years 2024 and 2023. This reconciliation helps to explain the differences between the expected tax expense based on the statutory rate and the actual tax expense reported. The various components listed, such as non-deductible share-based compensation, general business credits, and adjustments for items like foreign losses and intercompany interest, contribute to the final income tax expense figure.
For a prospective Hardees franchisee, understanding these financial statements is crucial. The income tax expense is a significant factor in determining the overall profitability of the Hardees franchise. By examining these figures, potential franchisees can gain insight into the tax obligations and how they might impact their net income. It is important to note that these figures represent the overall company's tax situation and may not directly reflect the tax liabilities of an individual franchise, which would depend on its specific financial performance and structure.
Furthermore, the FDD also presents a breakdown of the income tax expense into current and deferred components, specifying federal, state, and foreign taxes. For fiscal year 2023, the total income tax expense of $8,865 is the sum of these various tax categories. This detailed presentation allows potential franchisees to assess the different types of taxes that contribute to the overall tax expense, providing a more comprehensive view of Hardees's financial obligations.