What was the total amount of 'Other long-term liabilities' for Del Taco as of September 29, 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
----------| | Trademarks | $ 283,500 | Indefinite | | Franchise contracts | 9,700 | 18 | | Sublease assets | 2,671 | 13 | | Estimated fair value of acquired intangible assets | $ 295,871 | | The estimated values of sublease liabilities totaled approximately $6.0 million
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the estimated values of sublease liabilities totaled approximately $6.0 million. These liabilities have an estimated weighted-average useful life of approximately 15 years. The FDD states that these liabilities are included in "Other long-term liabilities" in the accompanying consolidated balance sheets. Therefore, as of September 29, 2024, the total amount of sublease liabilities, which are categorized as 'Other long-term liabilities,' was approximately $6.0 million.
For a prospective Del Taco franchisee, understanding the nature and duration of these long-term liabilities is crucial. These liabilities, stemming from subleases, represent a financial obligation that Del Taco carries on its balance sheet. The 15-year weighted-average useful life indicates that these obligations extend over a significant period, impacting the company's long-term financial health and potentially influencing strategic decisions.
It's important to note that this figure only accounts for sublease liabilities. Other components might contribute to the overall 'Other long-term liabilities' category. A potential franchisee should seek clarification from Del Taco regarding the complete composition of this line item to gain a comprehensive understanding of the company's long-term financial obligations and how they might affect the franchisee's investment and the franchisor's stability.