For Del Taco, what is included in the 'Franchise rental revenues' within the consolidated statements of earnings?

According to Del Taco's 2025 Franchise Disclosure Document, franchise rental revenues are part of the overall revenue that the company generates. Specifically, the FDD provides a breakdown of revenue sources for the fiscal year ended September 29, 2024. Franchise rental revenues for Del Taco totaled $28.201 million. This is in comparison to Jack in the Box, which had franchise rental revenues of $347.227 million. The combined franchise rental revenue for both brands was $375.428 million.

This revenue stream is important because it reflects income Del Taco receives from leasing properties to its franchisees. Franchisees typically pay rent to the franchisor for the use of the restaurant premises, and this rental income contributes to the franchisor's overall financial performance. The fact that Del Taco generates $28.201 million in franchise rental revenues indicates a significant portion of their income is derived from these leasing arrangements.

For a potential Del Taco franchisee, this information highlights the importance of understanding the rental terms and conditions outlined in the franchise agreement. The rental payments will be a recurring expense that impacts the franchisee's profitability. It also demonstrates that a portion of the revenue that Del Taco receives is directly tied to rental income from its franchisees, making the location and property management aspects of the franchise system crucial for both parties.