What was the amount of franchise fees related to refranchising for Del Taco in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
NGS AND FRANCHISE ACQUISITIONS
Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):
| 202 | 4 | 2023 | 2022 | |
|---|---|---|---|---|
| Restaurants sold to Jack in the Box franchisees | _ | 5 | 15 | |
| Restaurants sold to Del Taco franchisees | 47 | 111 | ||
| Proceeds from the sale of company-operated restaurants (1) | $ 19 | 9,400 | $ 85,221 | $ 6,391 |
| Broker commissions | _ | (1,614) | _ | |
| Net assets sold (primarily property and equipment) | (: | 5,310) | (17,101) | (1,565) |
| Goodwill related to the sale of company-operated restaurants | (6 | 5,835) | (35,544) | (948) |
| Franchise fees | ( | 1,266) | (3,086) | |
| Sublease liabilities, net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchise fees related to the sale of company-operated restaurants in 2023 amounted to a loss of $3,086,000. This figure is part of a larger table summarizing refranchising activities.
This loss in franchise fees is part of a broader financial overview that includes proceeds from sales, broker commissions, net assets sold, goodwill, sublease liabilities, lease terminations, and other related items. The table provides a detailed look at the financial impacts associated with Del Taco's refranchising strategy.
Prospective franchisees should note that these figures reflect the financial activities of Del Taco as a whole and may not directly indicate the financial performance of individual franchise locations. Understanding the context of these fees within Del Taco's overall financial strategy is crucial for potential investors.