What was the value of Del Taco's operating lease right-of-use assets?

According to the 2025 FDD, when Jack in the Box acquired restaurants from Del Taco franchisees, the operating lease right-of-use assets were valued at $3,211,000. This valuation was part of a larger transaction where 9 restaurants were acquired. The purchase price for these restaurants was a negative $86,000, with closing and acquisition costs adding another negative $43,000. Other assets acquired included property and equipment valued at $3,612,000 and intangible assets at $167,000. The operating lease liabilities were valued at a negative $4,505,000. The gain on the acquisition of franchise-operated restaurants was $2,357,000.

Operating lease right-of-use assets represent a company's right to use an asset for the lease term. This accounting treatment reflects that Del Taco has control over the use of the leased property. For a potential franchisee, understanding the valuation of these assets is crucial because it impacts the overall financial picture of the acquired restaurants. The difference between the right-of-use assets and the lease liabilities indicates the net value Del Taco receives from these leases.

It's important to note that these figures are specific to the acquisition of franchise-operated restaurants and may not reflect the overall value of all operating lease right-of-use assets held by Del Taco. Additionally, the purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3), which means they are based on the company's own assumptions and may be subject to change. A prospective franchisee should consult with a financial advisor to fully understand the implications of these valuations.