What was the balance as of the end of the period for Del Taco in 2024?

According to Del Taco's 2025 Franchise Disclosure Document, the balance as of the end of the period for the allowance for doubtful accounts in 2024 was $(4,793) thousand. This figure represents the company's estimation of potential credit losses from franchisees. This is based on historical collection experience, current market conditions, and the financial health of the franchisees. Del Taco monitors credit quality by tracking payment timings against predefined criteria and any known financial issues of franchisees or customers.

The allowance for doubtful accounts is a contra-asset account, meaning it reduces the total value of accounts receivable reported on Del Taco's balance sheet. The balance of $(4,793) thousand indicates that Del Taco anticipates that $4,793,000 of its outstanding receivables may not be fully collected. This is an estimate, and the actual amount of uncollectible receivables could differ.

For a prospective Del Taco franchisee, this information highlights the importance of maintaining a strong financial standing and adhering to payment terms. While the document states that Del Taco's allowance for doubtful accounts has not historically been material, consistent monitoring and estimation of potential credit losses suggest that Del Taco actively manages its financial risks associated with franchisees.

The table also shows the balance as of the beginning of the period, $(4,512) thousand, a provision reversal for expected credit losses of $(421) thousand, and write-offs charged against the allowance of $140 thousand. These figures provide a more complete picture of how the allowance for doubtful accounts changed during the period.