What was the total amount of franchise contributions for advertising and other services for Del Taco in January 2025?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchise contributions for advertising and other services totaled $77,452 in January 2025. This figure reflects the aggregate amount that Del Taco franchisees contributed towards advertising and other services during that specific month.
For a prospective franchisee, this indicates the scale of financial commitment that Del Taco franchisees collectively make to support advertising and related services. It is important to note that this is a single month's contribution, and the actual amount may vary in other months. Understanding the factors that influence these contributions, such as sales performance or promotional activities, would be beneficial for budgeting and financial planning.
This contribution is used to fund advertising and other services that aim to promote the Del Taco brand and drive sales across the franchise system. Franchisees should inquire about the specific allocation of these funds, the types of advertising and services they support, and the overall marketing strategy of Del Taco. Knowing how these contributions translate into tangible benefits for individual franchise locations is crucial for evaluating the value of this investment.