What was the total interest expense for Hardees in Fiscal Year 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
recorded a loss on early extinguishment of debt of $1,283 during fiscal 2025, which was comprised of the write-off of the Series 2018-1 Class A-2-II Notes unamortized deferred financing costs. The loss is included in other income, net in the Combined Consolidated Statements of Income.
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
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total interest expense for fiscal year 2024 was $61,863. The interest expense is comprised of several components, including Series 2018-1 Class A-2-III Notes, Series 2020-1 Class A-2 Notes, Series 2021-1 Class A-2 Notes, Series 2024-1 Class A-2 Notes, amortization of deferred financing costs, finance leases, financing method sale-leaseback obligations, and letter of credit fees, commitment fees and other.
Breaking down the components of the $61,863 total interest expense, the Series 2018-1 Class A-2-III Notes accounted for $30,013, the Series 2020-1 Class A-2 Notes accounted for $15,466, and the Series 2021-1 Class A-2 Notes accounted for $5,034. Amortization of deferred financing costs was $3,419, finance leases were $1,318, financing method sale-leaseback obligations were $5,793 and letter of credit fees, commitment fees and other expenses totaled $820.
Prospective Hardees franchisees should understand how these interest expenses are structured and how they might affect the overall financial health of Hardees. Monitoring these expenses can provide insights into the company's debt management and financial strategies. Significant changes in these figures from year to year could indicate shifts in Hardees's financing activities, which could impact franchisees indirectly.