What were the proceeds from the sale and leaseback of assets for Del Taco 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, in 2023, the proceeds from the sale of company-operated restaurants totaled $85,221,000. This figure is part of a larger table summarizing refranchising activities. The table also includes other financial details related to these sales, such as broker commissions, net assets sold, goodwill, franchise fees, sublease liabilities, lease terminations and other gains on the sale of company-operated restaurants.
Del Taco's refranchising strategy involves selling company-owned restaurants to franchisees. Proceeds from these sales can fluctuate significantly year to year, as seen by the $9,400,000 in proceeds in 2024 and $6,391,000 in 2022. These proceeds are impacted by factors such as the number of restaurants sold, the financial terms of the deals, and the real estate market conditions at the time of sale.
For a prospective Del Taco franchisee, understanding these refranchising activities is crucial. It provides insight into the brand's strategy, potential opportunities to acquire existing restaurants, and the financial implications of such transactions. Reviewing the complete financial statements and asking Del Taco for more details on their refranchising plans and criteria would be beneficial for any potential franchisee.