Where are contributions made by the Del Taco parent company included in the condensed consolidated statements of earnings?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
nd contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales, and marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales.
Contributions made by the
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, contributions made by the parent company are included in "Selling, general and administrative expenses" within the condensed consolidated statements of earnings. In 2025 and 2024, the consolidated advertising costs totaled $10.5 million and $10.4 million, respectively.
This means that when Del Taco's parent company makes contributions, these are categorized as selling, general, and administrative expenses in the financial statements. This is a common accounting practice, as these types of contributions are related to the overall costs of running and promoting the business.
For a prospective franchisee, understanding where these contributions are accounted for provides insight into the overall financial structure and expense allocation of the Del Taco franchise system. It's important to review these expenses in the context of the overall financial performance of the company to assess the financial health and stability of the franchise system.