What was the total interest expense for Hardees in the financial period represented by the first column of figures?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
[Chunk 3 | Item 21: Financial Statements] [Item 21: Financial Statements]
Debt issuance costs
In connection with the Series 2024-1 Refinancing and the amendment of the Series 2018-1 Variable Funding Notes, we incurred debt issuance costs of $7,860, which were capitalized and allocated between the Series 2024-1 Class A-2 Notes and the Series 2018-1 Variable Funding Notes. These deferred financing costs will be amortized to interest expense within the Consolidated Statements of Operations using the effective interest method over the expected term of the Series 2024-1 Class A-2 Notes of seven years and five years for the Series 2018-1 Variable Funding Notes.
Other Notes
In connection with the acquisition of Hardee's restaurants from a franchisee, we assumed a $2,100 unsecured note. On November 20, 2020, we paid down $200. On July 25, 2023, we paid down the remaining $1,900.
Interest Expense
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, information regarding interest expense can be found within the financial statements. Specifically, the FDD mentions that debt issuance costs are amortized to interest expense using the effective interest method. It also notes the assumption of a $2,100 unsecured note related to the acquisition of Hardee's restaurants from a franchisee, which was subsequently paid down. However, the document does not provide a consolidated figure for the total interest expense for Hardees during the specific financial period represented by the first column of figures.
While the FDD provides details on how interest expenses are treated and some specific debt-related transactions, it lacks a clear, summarized figure for the total interest expense. This makes it difficult for a prospective franchisee to quickly assess the overall cost of debt for Hardees. The absence of this figure means that potential franchisees need to dig deeper into the financial statements or seek clarification from the franchisor.
To gain a comprehensive understanding of Hardees's financial health, a prospective franchisee should request a detailed breakdown of the interest expenses. This should include the total interest expense for the period, as well as a breakdown of the different types of debt and their associated interest rates. Understanding the interest expense is crucial for assessing the profitability and financial stability of Hardees.