What was the value of Del Taco's trademarks?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
During the third quarter of 2024, the Company had identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $162.6 million at that time. The Company determined that there was no such triggering event for the Jack in the Box reporting unit.
In connection with our impairment reviews performed during 2025 and 2024, the Company impaired certain Del Taco assets.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not contain a specific valuation of Del Taco's trademarks as a standalone asset. However, the FDD does discuss goodwill and intangible assets in the context of the acquisition of Del Taco by Jack in the Box. Goodwill, which can be related to brand strength and trademarks, is mentioned in connection with impairment testing and the purchase price over the fair value of identifiable net assets acquired. The document also mentions that the company tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events and circumstances warrant. During the third quarter of 2024, the company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $162.6 million at that time.
While a precise value for the Del Taco trademarks is not provided, the FDD indicates that these assets are considered in the overall financial assessment of the brand's value. The discussion of goodwill impairment suggests that the perceived value of the Del Taco brand can fluctuate based on performance and market conditions. The FDD states that the Company impaired certain Del Taco assets in connection with impairment reviews performed during 2025 and 2024.
A prospective franchisee should inquire with Del Taco about the most recent internal valuation of its trademarks and other intangible assets. Understanding how the franchisor values its brand and protects its intellectual property is a crucial part of the due diligence process. Del Taco may have internal documents or external appraisals that provide more specific details on the value of its trademarks, which are not included in the provided excerpts.