What was the net value of Del Taco's trade accounts and other receivables on January 19, 2025?
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 | |
|---|---|---|
| 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 January 19, 2025, the net value of accounts and other receivables totaled $68,081,000. This figure is derived from several components, including trade receivables of $61,386,000, notes receivable (current portion) of $1,996,000, income tax receivable of $766,000, and other receivables amounting to $8,726,000. These positive balances are offset by an allowance for doubtful accounts of $4,793,000, which reduces the gross receivables to the net value reported.
For a prospective Del Taco franchisee, understanding these figures provides insight into the brand's financial health and its management of accounts receivable. A significant portion of these receivables likely comes from sales to customers and potentially from franchisees, depending on the specific financial arrangements Del Taco has in place. The allowance for doubtful accounts is a standard accounting practice to account for the risk that some receivables may not be collected, which is a normal part of doing business.
The comparison to the figures from September 29, 2024, shows some fluctuation in these accounts. For instance, trade receivables decreased from $71,306,000 to $61,386,000, and other receivables decreased from $13,918,000 to $8,726,000. These changes could be due to various factors, such as seasonal sales variations, changes in payment terms, or specific collection efforts. Monitoring these trends over time can help Del Taco and its franchisees manage their working capital effectively and make informed financial decisions.
Prospective franchisees should inquire about the typical collection periods for receivables, the criteria used to determine the allowance for doubtful accounts, and any specific risks associated with collecting receivables from customers or other franchisees. Understanding these details will help a new franchisee better manage their own cash flow and financial planning within the Del Taco system.