What was the amount of franchise fees related to the sale of Del Taco company-operated restaurants 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 |
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 totaled $3,086,000. This figure represents a deduction from the proceeds of the sale.
For a prospective franchisee, this indicates that when Del Taco sells company-operated restaurants to franchisees, franchise fees are involved in the transaction. These fees impact the overall financial outcome of the sale, reducing the gains recognized by Del Taco.
It's important to note that this figure reflects franchise fees specifically related to sales to franchisees and does not include other sources of franchise fee revenue, such as initial franchise fees paid by new franchisees. Understanding the context of this figure is crucial for assessing the financial dynamics between Del Taco and its franchisees during restaurant sales.