What is the reported amount for Del Taco's franchise contracts?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
2.6 million at that time. The Company determined that there was no such triggering event for the Jack in the Box reporting unit.
The net carrying amounts of intangible assets other than goodwill with definite lives are as follows (in thousands):
| Gross Amount | Accumulated | Net Amount | Gross Amount | Accumulated | Net Amount | |
|---|---|---|---|---|---|---|
| Amortization | Amortization | |||||
| Definite-lived intangible assets: | ||||||
| Sublease assets | $ 2,671 | $ (694) | $ 1,977 | $ 2,671 | $ (620) | $ 2,051 |
| Franchise contracts | 9,700 | (1,554) | 8,146 | 9,700 | (1,389) | 8,311 |
| Reacquired franchise rights | 464 | (317) | 147 | 464 | (311) | 153 |
| $ 12,835 | $ (2,565 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the gross amount for franchise contracts is $9,700,000, with accumulated amortization of $1,554,000, resulting in a net amount of $8,146,000 as of January 19, 2025. As of September 29, 2024, the gross amount for franchise contracts was also $9,700,000, with accumulated amortization of $1,389,000, resulting in a net amount of $8,311,000. These figures are part of Del Taco's definite-lived intangible assets.
These values reflect the accounting of Del Taco's franchise contracts as assets with a defined lifespan, subject to amortization over time. The amortization represents the systematic reduction of the asset's value over its useful life. The difference between the gross amount and accumulated amortization gives the net book value of these franchise contracts at a specific point in time.
For a prospective franchisee, this information provides insight into how Del Taco values its franchise contracts on its balance sheet. It's important to note that these figures represent the franchisor's accounting perspective and may not directly correlate with the individual franchisee's investment or financial performance. Understanding these values can help a franchisee better assess the overall financial health and stability of the Del Taco franchise system.