What is the basis of presentation for the accompanying consolidated balance sheets of Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC").
These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 29, 2024 ("2024 Form 10-K"). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2024 Form 10-K.
In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 FDD, the accompanying condensed consolidated financial statements for Del Taco have been prepared following U.S. Generally Accepted Accounting Principles (GAAP) and the rules and regulations established by the Securities and Exchange Commission (SEC). These principles and regulations provide a standardized framework for financial reporting, ensuring transparency and comparability across different companies and industries.
For prospective Del Taco franchisees, this means that the financial statements included in the FDD are prepared using a consistent and recognized set of accounting standards. This allows franchisees to better understand Del Taco's financial performance and position, as well as compare it to other franchise opportunities. It also ensures that the financial information is reliable and has been prepared in accordance with established guidelines.
The FDD also notes that these financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 29, 2024. The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in their 2024 Form 10-K. This is because the condensed statements are an interim report, and the 10-K provides a more comprehensive overview.
The FDD states that all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included and that operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. This means that while the statements are presented fairly, potential franchisees should not rely solely on the interim results when evaluating the franchise opportunity.