factual

What six line items are subtracted from sales to comprise 'Controllable Profit' for Del Taco?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (10)Sales minus the six line items above, inclusive, comprise "Controllable Profit."

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 47–54)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, 'Controllable Profit' is calculated by subtracting six specific line items from sales. While the FDD excerpt indicates that sales minus six line items comprise 'Controllable Profit,' it does not explicitly list what those six line items are.

To fully understand how 'Controllable Profit' is derived, a prospective Del Taco franchisee should carefully review Table 19-2-A, which presents the average operating results for freestanding company-owned restaurants. This table includes line items such as 'Food and Paper Costs', 'Labor', 'Benefits', 'Utilities', 'Repairs & Supplies', and 'Miscellaneous' costs. By examining this table, a franchisee can infer which costs are deducted from sales to arrive at the 'Controllable Profit' figure.

It is important to note that the FDD emphasizes that a franchisee's individual results may differ from the averages presented. Factors such as local market conditions, management experience, and operating costs can all impact profitability. Therefore, a thorough investigation of potential costs and expenses is crucial before investing in a Del Taco franchise. Prospective franchisees should also request written substantiation for the financial performance representation from Del Taco to gain a more detailed understanding of the figures presented.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.