What was the total value of land leased to others by Hardees as of January 31, 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Series 2018-1 Class A-2 Notes | $ | 30,013 | $ | 30,364 |
|---|---|---|---|---|
| Series 2020-1 Class A-2 Notes | 15,466 | 15,643 | ||
| Series 2021-1 Class A-2 Notes | 5,034 | 5,092 | ||
| Amortization of deferred financing costs | 3,419 | 3,352 | ||
| Finance leases | 1,318 | 1,302 | ||
| Financing method sale-leaseback obligations (see Note 10) | 5,793 | 6,276 | ||
| Letter of credit fees, commitment fees and other | 820 | 723 | ||
| Total interest expense | $ | 61,863 | $ | 62, |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the company leases land and buildings to others, primarily due to refranchising certain restaurants. These leases often include fixed payments, variable rent based on sales, or rent as a percentage of sales. The lessees or sublessees are typically responsible for maintenance, insurance, and property taxes.
As of January 31, 2023, the carrying value of land leased to others by Hardees was $118,052. This figure represents the value of land Hardees owns and leases out, not the value of land Hardees leases from others.
Prospective franchisees should note that these figures reflect Hardees' activities as a lessor. This indicates that Hardees may generate revenue from leasing property in addition to its primary business of operating and franchising restaurants. Understanding Hardees' real estate strategy and lease agreements could be beneficial for franchisees considering location options or potential subleasing opportunities.