As of December 31, 2024 and 2023, did Alloy have any uncertain tax positions?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
As a limited liability company, the Company is treated as a partnership for federal and state income tax purposes. Accordingly, no provision has been made for income taxes in the accompanying financial statements, since all items of income and losses are required to be reported on the income tax returns of the members, who are responsible for any taxes thereon.
The Company recognizes and measures its unrecognized tax benefits in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, Income Taxes. Under that guidance, management assesses the likelihood that tax positions will be sustained upon examination based on the facts, circumstances and information, including the technical merits of those positions, available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new information is available or when an event occurs that requires a change. There were no uncertain tax positions at December 31, 2024 and 2023.
The Company files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy Personal Training, LLC, as a limited liability company, is treated as a partnership for federal and state income tax purposes. This means that the company itself does not pay income taxes. Instead, all items of income and losses are reported on the income tax returns of its members, who are then responsible for any taxes due.
The FDD states that Alloy adheres to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes, when recognizing and measuring unrecognized tax benefits. Alloy management assesses the likelihood of their tax positions being sustained upon examination, considering available information and the technical merits of those positions at the end of each period. Adjustments to the measurement of unrecognized tax benefits are made when new information becomes available or when an event necessitates a change.
As of December 31, 2024 and 2023, Alloy reports that there were no uncertain tax positions. Alloy files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions.