What were the open audit periods for Aerus's income tax filings, as of the date of this FDD?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company follows ASC Topic 740, Income Taxes, relating to unrecognized tax benefits. The Company's income tax filings are subject to audit by taxing authorities. The Company's open audit periods are 2021-2024. In evaluating the Company's tax provisions and accruals, future taxable income, and the reversal of temporary differences, interpretations, and tax planning strategies are considered. The Company believes its estimates are appropriate based on current facts and circumstances.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the company's income tax filings are subject to audit by taxing authorities. As of the issuance date of the FDD, Aerus's open audit periods are for the years 2021 through 2024.
This means that taxing authorities could potentially review Aerus's income tax filings for these years and make adjustments if they find any discrepancies. This is a standard practice for businesses and allows taxing authorities to ensure compliance with tax laws.
As a prospective franchisee, it is important to understand that Aerus's past tax filings could potentially impact the company's financial stability. While the company believes its estimates are appropriate based on current facts and circumstances, there is always a risk that taxing authorities could make adjustments that could negatively impact the company's financial performance. It would be prudent to discuss these open audit periods with Aerus to understand any potential risks or liabilities associated with them.