What was the gross amount of Del Taco's reacquired franchise rights as of January 19, 2025?
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 | $ |
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 as of January 19, 2025, was $464,000. The accumulated amortization for these rights was $317,000, resulting in a net amount of $147,000.
For a prospective Del Taco franchisee, this information provides insight into the value Del Taco places on reacquired franchise rights. These rights represent the value associated with territories or restaurants that Del Taco has bought back from previous franchisees. The gross amount reflects the initial value, while the accumulated amortization represents the amount of that value that has been expensed over time.
Understanding how Del Taco values and accounts for these reacquired rights can be useful for franchisees when assessing the financial health and strategic decisions of the company. It also provides context for potential future acquisitions or sales of franchise rights, which could impact the franchise network and individual franchise operations.