In 2024, how many franchise-operated restaurants did Del Taco purchase, and for what total amount?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
l proceeds of $1.5 million, $0.9 million, and $1.4 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years.
Franchise acquisitions — In 2024, Del Taco purchased 10 franchise-operated restaurants for $86 thousand as part of three separate transactions, and recognized related gains of $2.7 million. In 2022, Jack in the Box acquired 13 franchise restaurants for total consideration of $0.3 million, comprised of franchise receivables owed to the Company as of the acquisition date. There were no such acquisitions in 2023.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, in 2024, Del Taco engaged in multiple transactions to purchase franchise-operated restaurants. Specifically, Del Taco purchased 10 franchise-operated restaurants for $86,000 as part of three separate transactions. These acquisitions resulted in Del Taco recognizing gains of $2.7 million.
Additionally, the FDD mentions that during the first quarter of 2024, Del Taco acquired 9 Del Taco franchise restaurants for $0.1 million (equivalent to $100,000) as part of two separate transactions, recognizing gains of $2.4 million. This amount was recorded in "Other operating expenses, net" in the condensed consolidated statements of earnings. The document also provides a table summarizing the number of restaurants acquired from franchisees for the sixteen weeks ended January 21, 2024, showing 9 restaurants acquired with a purchase price of $86,000.
It's important to note the slight discrepancy in the number of restaurants and purchase price reported in different sections of the FDD. One section indicates 10 restaurants purchased for $86,000 over three transactions, while another details 9 restaurants purchased for $100,000 over two transactions in the first quarter alone. A prospective franchisee should seek clarification from Del Taco regarding these figures to understand the complete picture of franchise acquisitions during 2024.