What was the value of the Series 2020-1 Class A-2 Notes for Hardees in 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| _ | 20 | 24 | 2023 | ||||
|---|---|---|---|---|---|---|---|
| Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||
| Financial liabilities: | |||||||
| Series 2018-1 Class A-2-II Notes $ | 329,928 | $ 315,044 | $ 332,363 | $ 319,515 | |||
| Series 2018-1 Class A-2-III Notes | 234,366 | 222,070 | 236,353 | 227,945 | |||
| Series 2020-1 Class A-2 Notes | 382,905 | 344,350 | $ 385,688 | $ 346,802 | |||
| Series 2021-1 Class A-2 Notes | 172,625 | 146,543 | 173,801 | 146,485 |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the carrying amount for the Series 2020-1 Class A-2 Notes in 2023 was $385,688, while the estimated fair value was $346,802. These figures reflect the financial liabilities Hardees has in relation to these specific notes.
These notes were issued on December 21, 2020, to pay down the Series 2018-1 Class A-2-I Notes. The Series 2020-1 Class A-2 Notes have an anticipated repayment date of December 2027 and a final maturity date of December 2050, requiring quarterly principal payments of $1,000 starting March 22, 2021. Interest payments are due quarterly in arrears on the 20th day of March, June, September, and December.
For a prospective Hardees franchisee, understanding these financial liabilities provides insight into the financial structure of the company. While franchisees are not directly responsible for these debts, the overall financial health of Hardees can impact the support and resources available to franchisees. Monitoring these figures over time can offer a glimpse into the company's financial stability and its ability to invest in the brand's future growth and franchisee support.