What accounting standards must Del Taco franchisees adhere to when preparing financial statements?

According to the 2025 Del Taco Franchise Disclosure Document, the company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC). This means that Del Taco franchisees are expected to adhere to U.S. GAAP when preparing their financial statements. These principles provide a common set of accounting standards, ensuring transparency and comparability across different businesses.

Following U.S. GAAP requires management to make certain assumptions and estimates that affect the reported amounts of assets, liabilities, revenues, expenses, and the disclosure of contingencies. These estimates can involve seeking advice from actuaries and other experts. Actual financial results could differ significantly from these estimates. Franchisees must be aware of the need for careful judgment and the potential for variability in financial reporting when adhering to these standards.

For a Del Taco franchisee, this means that their financial reporting must align with these established standards. This includes how revenue is recognized, how expenses are recorded, and how assets and liabilities are valued. Adhering to U.S. GAAP ensures that the financial statements are reliable and can be used for making informed business decisions, securing financing, and complying with regulatory requirements. Franchisees should consult with qualified accounting professionals to ensure they are meeting these requirements.