What were the proceeds from the sale of company-operated restaurants for Del Taco in January 19?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
effect.
Executed and delivered as of the date of the Franchise Agreement.
| Del Taco: | Del Taco LLC |
|---|---|
| By: | |
| Jack Tang, Vice President, General Counsel | |
| Franchisee: | |
| By: | |
| Its: | |
| Date: |
EXHIBIT G
HARDWARE AND SOFTWARE LICENSE AND SUPPORT AGREEMENT
HARDWARE AND SOFTWARE LICENSE AND SUPPORT AGREEMENT
| January 19, | January 21, | |
|---|---|---|
| 2025 | 2024 | |
| Revenues: | ||
| Company restaurant sales | $ 201,406 | $ 224,040 |
| Franchise rental revenues | 116,546 | 113,196 |
| Franchise royalties and other | 74,034 | 73,330 |
| Franchise contributions for advertising and other services | 77,452 | 76,932 |
| 469,438 | 487,498 | |
| Operating costs and expenses, net: | ||
| Food and packaging | 51,648 | 64,132 |
| Payroll and employee benefits | 70,273 | 73,054 |
| Occupancy and other | 39,146 | 42,053 |
| Franchise occupancy expenses | 78,833 | 72,624 |
| Franchise support and other costs | 5,198 | 5,194 |
| Franchise advertising and other services expenses | 78,998 | 80,234 |
| Selling, general and administrative expenses | 50,672 | 46,365 |
| Depreciation and amortization | 18,270 | 18,473 |
| Pre-opening costs | 1,476 | 465 |
| Other operating expenses, net | 3,519 | 5,170 |
| (Gains) losses on the sale of company-operated restaurants | (2,806) | 254 |
| 395,227 | 408,018 | |
| Earnings from operations | 74,211 | 79,480 |
| Other pension and post-retirement expenses, net | 1,789 | 2,106 |
| Interest expense, net | 24,425 | 24,486 |
| Earnings before income taxes | 47,997 | 52,888 |
| Income taxes | 14,311 | 14,205 |
| Net earnings | $ 33,686 | $ 38,683 |
| Earnings per share: | ||
| Basic | $ 1.77 | $ 1.94 |
| Diluted | $ 1.75 | $ 1.93 |
| Cash dividends declared per common share | ||
| $ 0.44 | $ 0.44 |
RECITALS
Del Taco operates franchises and licenses Del Taco Restaurants that feature Mexican-American and American dishes. Del Taco and Licensee have entered into or propose to enter into one or more Franchise Agreements (each a Franchise Agreement" and, collectively, the "Franchise Agreements").
As a result of the expenditure of time, skill, effort and money, Del Taco has developed, and owns all rights to, the Software (as defined below) and associated Documentation (as defined below) (collectively, the "Software and Documentation") for use in Restaurants operated by Del Taco and its franchisees.
Del Taco requires that Licensee utilize the Software and Documentation in each of the designated franchised Del Taco Restaurants (the "Licensed Restaurants") listed on appendices to this Agreement. Del Taco must grant its consent for additional Restaurants to be added to this License Agreement by additional appendices. Each additional Restaurant shall be designated by a letter that is successive to the previous appendix and dated as of the date that Del Taco grants its approval ("Approval Date").
If Licensee is not able to schedule a qualified third party technician approved by Del Taco ("Approved Vendor"), Del Taco shall provide to Licensee certain technical support services, as determined by Del Taco, in its sole discretion, for the Software and Licensee's Covered Equipment (as defined below), on the terms and conditions set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the proceeds from the sale of company-operated restaurants in January 2019 were $5,712. This figure is part of the cash flows from investing activities reported in the financial statements.
For a prospective franchisee, this number provides insight into Del Taco's asset management and potential revenue streams beyond standard restaurant operations. Selling company-operated restaurants can be a strategic move for Del Taco, possibly to reallocate capital or shift focus towards franchising.
It's important to note that this is a single data point from one specific period. A potential franchisee should look at these figures over several years to understand trends and the overall financial strategy of Del Taco. Understanding these trends can help a franchisee assess the financial stability and strategic direction of the company.