What was the total operating lease cost for Hardees in fiscal year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
are included in accounts receivable, net and other assets, net in our accompanying Consolidated Balance Sheets. As of January 31, 2025, future minimum lease and sublease rent revenue expected to be received, are as follows:
| Finance Leases Operating Leases | |||||
|---|---|---|---|---|---|
| Subleases | Subleases | Owned Properties | |||
| Fiscal: | |||||
| 2026 | $ 366 | $ | 75,885 |
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 lease cost for fiscal year 2025 was $90,084. This figure includes both the operating lease cost of $88,491 and the variable lease cost of $1,593.
Operating leases are agreements where Hardees rents property or equipment for use in its operations. The operating lease cost represents the base rent payments, while the variable lease cost typically covers expenses that fluctuate based on usage, sales, or other factors. These costs are significant for Hardees, reflecting the expenses associated with leasing restaurant locations and equipment necessary for running the business.
A prospective Hardees franchisee should understand how these lease costs are factored into the overall financial performance of the franchise. It's important to review the specific lease agreements for the franchise location to understand the fixed and variable components and how they might impact profitability. Understanding these costs is crucial for accurate financial forecasting and managing the franchise's operational expenses.