What was the current income tax expense for 1-800-GOT-JUNK? for the period ended May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Income tax expense: Current
25,716
Deferred 59,707 32,952
85,423 32,952
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the current income tax expense for the period ending May 31, 2025, was $25,716. This figure reflects the company's income tax obligations based on its earnings for that period. In contrast, for the same period in 2024, the current income tax expense was reported as zero.
Additionally, 1-800-GOT-JUNK? also reported a deferred income tax expense of $59,707 for the period ending May 31, 2025. Deferred income taxes arise from temporary differences between the accounting and tax treatment of certain items, which means the total income tax expense was $85,423. For the same period in 2024, the deferred income tax expense was $32,952, making the total income tax expense $32,952.
Prospective franchisees should consider income tax expenses as part of their financial planning. These expenses can impact the overall profitability of the franchise. It is important to note that these figures are based on unaudited financial statements and are expressed in United States dollars. Franchisees should consult with financial advisors to understand the tax implications specific to their situation and location.