What were the gains on the sale of company-operated restaurants for Del Taco in 2022?
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, the gains on the sale of company-operated restaurants in 2022 were $3,878,000. This figure reflects the brand's financial activities related to refranchising efforts during that fiscal year.
For a prospective Del Taco franchisee, understanding these gains is crucial as it provides insight into the company's strategy regarding company-operated versus franchised locations. A higher gain might indicate a more aggressive refranchising initiative, which could mean more opportunities to acquire existing Del Taco restaurants. Conversely, minimal gains could suggest a different strategic focus.
It's important to note that these gains are influenced by various factors, including the sale price of the restaurants, the book value of the assets sold, and any related transaction costs. Franchisees should consider these figures in the context of overall financial performance and strategic direction to assess the stability and growth potential of the Del Taco brand.