What was the gross amount of Del Taco's reacquired franchise rights considered as a definite-lived intangible asset in the earlier period?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
2.6 million at that time. The Company determined that there was no such triggering event for the Jack in the Box reporting unit.
The net carrying amounts of intangible assets other than goodwill with definite lives are as follows (in thousands):
| Gross Amount | Accumulated | Net Amount | Gross Amount | Accumulated | Net Amount | |
|---|---|---|---|---|---|---|
| Amortization | Amortization | |||||
| Definite-lived intangible assets: | ||||||
| Sublease assets | $ 2,671 | $ (694) | $ 1,977 | $ 2,671 | $ (620) | $ 2,051 |
| Franchise contracts | 9,700 | (1,554) | 8,146 | 9,700 | (1,389) | 8,311 |
| Reacquired franchise rights | 464 | (317) | 147 | 464 | (311) | 153 |
| $ 12,835 | $ (2,565 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the gross amount of reacquired franchise rights, considered as a definite-lived intangible asset, was $464,000 in the earlier period. This figure represents the initial cost before accounting for amortization. These reacquired rights are categorized alongside other definite-lived intangible assets like sublease assets and franchise contracts.
These intangible assets are subject to amortization, which is the process of gradually writing off their value over their useful life. The accumulated amortization for reacquired franchise rights was $311,000 in the earlier period, resulting in a net amount of $153,000. In the later period, the gross amount remained the same at $464,000, while the accumulated amortization increased to $317,000, reducing the net amount to $147,000.
For a prospective Del Taco franchisee, understanding these figures is crucial for assessing the financial health and asset management strategies of the company. Reacquired franchise rights typically arise when Del Taco buys back a franchise location, adding to their portfolio of assets. The amortization schedule reflects how these assets contribute to the company's financial picture over time.
It's important to note that these figures are part of a broader set of financial statements and should be analyzed in conjunction with other data, such as revenue, expenses, and overall profitability, to gain a comprehensive understanding of Del Taco's financial performance. Additionally, intangible assets like the Del Taco trademark are listed separately as indefinite-lived assets and are not subject to amortization.