What was the net amount of trade accounts and other receivables for Del Taco as of September 29, 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
k equivalents | $ 61 | $ | 74 | | | Right-of use assets obtained in exchange for operating lease obligations | $ 63,007 | $ | 70,583 | | | | | | | | | | | | | |
16. SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands)
| January 19, 2025 | September 29, 2024 | |
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| Accoun |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, as of September 29, 2024, the net amount of accounts and other receivables was $83,567,000. This figure is derived from several components, including trade receivables of $71,306,000, notes receivable (current portion) of $2,036,000, income tax receivable of $819,000, and other receivables totaling $13,918,000. These amounts are offset by an allowance for doubtful accounts of $4,512,000.
For a prospective Del Taco franchisee, understanding the composition and management of these receivables is crucial. Trade receivables typically represent money owed by customers, while notes receivable are amounts due on promissory notes. Income tax receivables are refunds expected from tax authorities, and 'other' receivables can include a variety of items such as amounts due from insurance claims or employee advances. The allowance for doubtful accounts is an estimate of the portion of receivables that may not be collectible.
The net receivable amount indicates the total value of short-term assets Del Taco expects to convert into cash. Efficient management of these receivables is essential for maintaining healthy cash flow and financial stability. Franchisees should inquire about Del Taco's policies for managing receivables, including credit terms offered to customers, collection procedures, and the criteria used to determine the allowance for doubtful accounts. Understanding these practices will help franchisees manage their own finances and assess the overall financial health of the Del Taco system.
It's important to note that these figures are presented on a consolidated basis, reflecting the financial position of the entire Del Taco organization. Individual franchise locations will have their own accounts receivable, which may vary depending on factors such as location, customer base, and local economic conditions. Prospective franchisees should seek detailed information about the financial performance of existing franchise locations to gain a more accurate understanding of the potential financial outcomes for their own business.