What was the total benefit (provision) for income taxes for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
nce costs | | 206,519 | 851,000 | | Total current liabilities | | 8,793,496 | 6,994,472 | | Contract | | 20,994,540 | 17,393,479 | | liabilities, | | | | | net | | | | | of | | | | | current | | | | | portion | | | | | Operating lease liabilities, net of current portion | | 1,321,919 | 1,070,182 | | Long-term debt, net of current portion and debt issuance costs | | 46,197,321 | 46,148,366 | | | | | |
Deferred income tax liabilities 4,942,067 5,507,405
| Total liabilities | 82,249,343 | 77,113,904 |
|---|---|---|
| Commitments and contingencies (Notes 4, 5 & 6) | ||
| Members' equity | 47,328,038 | 61,292,873 |
| Total liabilities and members' equity | $ 129,577,381 | $ 138,406,777 |
For the Years Ended December 31,
| | 2024 | 2023 | |-------------------------------------------------------------------
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the total benefit (provision) for income taxes in 2024 was $432,399, while in 2023 it was ($765,698). This figure represents the overall impact of income taxes on the company's financial results, and it can be either a benefit (reducing the net loss) or a provision (increasing the net loss).
The table also breaks down the income taxes into current and deferred components, as well as federal and state portions. For example, in 2024, the deferred federal income tax was $453,482 and the deferred state income tax was $111,856. In 2023, the deferred federal income tax was ($292,567) and the deferred state income tax was ($131,688).
As a prospective franchisee, understanding these figures is crucial for assessing the financial health and profitability of 1 800 Packouts. The income tax benefit or provision can significantly impact the net income or loss, which ultimately affects the company's ability to reinvest in the business and support its franchisees. Reviewing these figures over multiple years, as presented in the table, provides a more comprehensive view of the company's tax situation and its impact on overall financial performance.