What was the total amount of proceeds from the sale of company-operated restaurants for Del Taco in 2022?
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 franch |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total proceeds from the sale of company-operated restaurants in 2022 was $6,391,000. This figure represents the gross amount Del Taco received before any deductions for broker commissions, net assets sold, goodwill, franchise fees, sublease liabilities, lease terminations, or other adjustments.
It is important to note that this amount does not represent the net gain Del Taco realized from these sales. After accounting for various expenses and adjustments, the gain on the sale of company-operated restaurants was $3,878,000 in 2022. The difference between the proceeds and the gain reflects the costs associated with the sale, such as the value of assets sold, franchise fees, and other related expenses.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and strategic decisions of Del Taco. The sale of company-operated restaurants can be a part of a refranchising strategy, where the company shifts towards a higher proportion of franchised locations. This can impact the brand's overall revenue streams and profitability, as well as the support and resources available to franchisees.