What was the total revenue generated by Del Taco franchise royalties?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| J | ack in the Box | Del Taco | Total | |
|---|---|---|---|---|
| Company restaurant sales | $ | 427,057 | $ 281,978 | $ 709,035 |
| Franchise rental revenues | 347,227 | 28,201 | 375,428 | |
| Franchise royalties | 198,377 | 31,714 | 230,091 | |
| Marketing fees | 197,900 | 26,258 | 224,158 | |
| Technology and sourcing fees | 19,857 | 4,658 | 24,515 | |
| Franchise fees and other services | 7,002 | 1,077 | 8,079 | |
| Total revenue | $ | 1,197,420 | $ 373,886 | $ 1,571,306 |
| Jack in the Box | Del Taco | Total | |
|---|---|---|---|
| Company restaurant sales | $ 132,057 | $ 91,983 | $ 224,040 |
| Franchise rental revenues | 105,578 | 7,618 | 113,196 |
| Franchise royalties | 61,323 | 9,454 | 70,777 |
| Marketing fees | 61,220 | 7,731 | 68,951 |
| Technology and sourcing fees | 6,142 | 1,839 | 7,981 |
| Franchise fees and other services | 2,020 | 533 | 2,553 |
| Total revenue | $ 368,340 | $ 119,158 | $ 487,498 |
| Jack in the Box | Del Taco | Total | |
|---|---|---|---|
| Company restaurant sales | $ 133,755 | $ 67,651 | $ 201,406 |
| Franchise rental revenues | 105,781 | 10,765 | 116,546 |
| Franchise royalties | 61,825 | 10,025 | 71,850 |
| Marketing fees | 61,461 | 8,480 | 69,941 |
| Technology and sourcing fees | 6,452 | 1,059 | 7,511 |
| Franchise fees and other services | 1,790 | 394 | 2,184 |
| Total revenue | $ 371,064 | $ 98,374 | $ 469,438 |
Our franchise arrangements generally provide for an initial franchise fee per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company's revenue from franchise royalties is disaggregated in Item 21. For the sixteen weeks ended January 19, 2025, Del Taco's franchise royalties totaled $31,714 (in thousands). For the fiscal year ended September 29, 2024, Del Taco's franchise royalties totaled $9,454 (in thousands). For another period, franchise royalties totaled $10,025 (in thousands). These royalties are based on a percentage of gross sales, as per the franchise agreements.
These figures represent only a portion of Del Taco's overall revenue streams, which also include company restaurant sales, franchise rental revenues, marketing fees, technology and sourcing fees, and franchise fees and other services. The royalties are collected from franchise-operated restaurants and are a key component of Del Taco's revenue model.
Prospective franchisees should understand how royalty fees are calculated and the impact of gross sales on these payments. It's also important to consider how these royalties contribute to the overall financial health and stability of the Del Taco franchise system. Understanding the different reporting periods and the fluctuations in royalty revenue can provide insights into the brand's performance and potential for growth.
It is important to note that the provided data is presented in thousands, so the actual figures are significantly higher. For example, the $31,714 reported for one period actually represents $31,714,000. Franchisees should carefully review the complete financial statements in Item 21 of the FDD and consult with a financial advisor to fully understand the financial implications of these figures.