What were the total operating costs and expenses for franchised Hardees restaurants and other?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
neral and administrative | . 63 | 22,295 | | (281) | 21,633 | _ | _ | 43,710 | | | | Facility action charges, net | (1,686) | | | 1,876 | | | | 190 | | | | Total operating costs and expenses | 175,907 | 22,295 | | 293,741 | 21,633 | | (19,200) | 494,376 | | | | Operating income (loss) | . 109,268 | (16,722) | _ | 92,523 | (8,007) | | _ | 177,062 | | | | Interest expense | (1,422) | (31,032) | _ | (5,319) | (30,999) | | _ | (68,772) | | | | Other income (loss), net | 1,143 | 104,400 | 60,034 | 517 | 86,881 | 47,162 | (298,893) | 1,244 | | | | Income (loss) before income taxes | 108,989 | 56,646 | 60,034 | 87,721 | 47,875 | 47,162 | (298,893) | 109,534 | | | | Income tax expense | 4,966 | | | 1,380 | | | | 6,346 | | | | Net income (loss) | $ 104,023 | $ 56,646 | $ 60,034 | $ 86,341 | $ 47,875 | $ 47,162 | $ (298,893) | $ 103,188 | | |
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING STATEMENTS OF INCOME (In thousands)
| isca | |
|---|---|
| Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities | |
|---|---|---|---|---|---|---|---|---|
| Revenue: | ||||||||
| Company-operated restaurants | . $ 112,928 | $ | $ | $ 255,914 | $ — | $ — | $ — | $ 368,842 |
| Franchised restaurants and other | . 175,402 | 5,643 | 117,311 | 12,594 | (18,237) | 292,713 | ||
| Total revenue | 288,330 | 5,643 | 373,225 | 12,594 | (18,237) | 661,555 | ||
| Operating costs and expenses: | ||||||||
| Company-operated restaurants: | ||||||||
| Food and packaging | 28,645 | _ | 69,234 | _ | _ | _ | 97,879 | |
| Payroll and other employee benefits | 34,371 | _ | _ | 88,269 | _ | _ | _ | 122,640 |
| Occupancy and other | 36,600 | 86,253 | (18,237) | 104,616 | ||||
| Total company-operated restaurants | 99,616 | _ | _ | 243,756 | _ | _ | (18,237) | 325,135 |
| Franc |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total operating costs and expenses for franchised restaurants and other was $24,742 for Hardee's Restaurants LLC and $68,884 for Carl's Jr. Restaurants LLC. These figures are part of a larger table presenting the financial results of various entities related to the CKE Securitization.
These costs and expenses do not include advertising or general and administrative costs. The franchised restaurants and other expenses for Hardees and Carl's Jr. are components of the total operating costs and expenses, which also include company-operated restaurants, advertising, general and administrative expenses, and facility action charges. The total operating costs and expenses for Hardees Restaurants LLC was $285,859 and $172,223 for Carl's Jr. Restaurants LLC.
For a prospective franchisee, understanding these costs is crucial for assessing the financial viability of a Hardees franchise. It's important to note that these figures represent specific entities within the Hardees system and may not directly reflect the operating costs of an individual franchise location. A potential franchisee should request detailed information on the specific costs they will be responsible for, including royalties, advertising fees, and other expenses, to develop an accurate financial model for their potential business.