How much did Del Taco spend on broker commissions related to refranchising in 2023?
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 company spent $1,614,000 on broker commissions related to refranchising in 2023. This figure is part of a larger table summarizing refranchising activities, which includes details such as the number of restaurants sold and the gains recognized.
For a prospective franchisee, this indicates the scale of Del Taco's refranchising efforts and the associated costs. Broker commissions are a significant expense in the refranchising process, reflecting the cost of professional services to facilitate these transactions. The proceeds from the sale of company-operated restaurants in 2023 totaled $85,221,000, while the net assets sold amounted to $17,101,000.
Understanding these figures can help a potential franchisee assess the financial health and strategic direction of Del Taco. Refranchising can be a way for a company to optimize its operations, and the details provided give insight into how Del Taco manages this process. The gains on the sale of company-operated restaurants in 2023 were $17,998,000, further illustrating the financial outcomes of these transactions.