What was the total Aplus income tax expense in 2023?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
partnership, we are generally not subject to federal income tax and most state income taxes. However, the Partnership conducts certain activities through corporate subsidiaries which are subject to federal and state income taxes. The components of the federal and state income tax expense (benefit) are summarized as follows:
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | |||
| Current: |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the total income tax expense for the year ended December 31, 2023, was $36. This figure reflects the company's total expense related to income taxes for that specific year. This expense is a component of the overall financial performance of Aplus, impacting its net income.
For a prospective franchisee, understanding the income tax expense is crucial as it provides insight into the profitability and financial health of Aplus. While franchisees do not directly pay Aplus's corporate income taxes, the company's profitability can affect its ability to support franchisees and invest in the brand. A higher income tax expense can reduce the net income available for reinvestment or distribution.
It's also important to note that the income tax expense can fluctuate from year to year due to various factors, including changes in tax laws, adjustments to deferred taxes, and the company's overall financial performance. Reviewing the trend in income tax expense over the three years presented (2021-2023) can provide a more comprehensive understanding of Aplus's tax situation. A prospective franchisee should consider these figures as part of their due diligence to assess the financial stability and potential risks associated with investing in an Aplus franchise.