What was the total income tax expense for Hardees in the later period presented in the financial statements?
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 the later period presented in the financial statements, which is fiscal year 2024, was $16,502. This figure represents the culmination of several factors that influence the overall tax expense.
The calculation begins with the income tax expense at the statutory rate, which was $12,942. Adjustments are then made for various items such as state income taxes (net of federal income tax effect), which decreased the expense by $2,986, and nondeductible share-based compensation, which added $446 to the expense. Other factors include general business credits which reduced the expense by $640, nondeductible foreign losses which increased it by $230, and adjustments for uncertain tax positions which increased it by $591.
Additionally, the foreign derived intangible income deduction reduced the expense by $2,003, and other miscellaneous items resulted in a further increase of $1,950. Summing all these adjustments, the total income tax expense for Hardees for fiscal year 2024 amounted to $16,502. A prospective franchisee should understand these components as they reflect the complexities of Hardees's tax obligations and can provide insight into the financial health and tax planning strategies of the company.