What was the total income tax expense for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
holders' Equity | | 8 | 1,674,622 | . $ | 1,895,292 |
| 2024 | 2023 | |
|---|---|---|
| Revenues | ||
| Royalties | $ 1,940,979 | $ 2,060,277 |
| Franchise fees | 732,500 | 994,000 |
| Advertising fees | 357,906 | 379,936 |
| Sponsorship | 40,350 | 11,100 |
| Total Revenues | 3,071,735 | 3,445,313 |
| Operating expenses | ||
| General and administrative | 2,381,195 | 2,789,406 |
| Franchise advertising | 429,599 | 551,000 |
| Depreciation | 51,794 | 33,509 |
| Total Operating Expenses | ||
| 2,862,588 | 3,373,915 | |
| Income (Loss) from Operations | 209,147 | 71,398 |
| Other Income/(Expense) | ||
| Other income | 37,453 | 14,942 |
| Other expense | - | (511) |
| Interest expense | (30,120) | (22,567) |
| Total Other Income/(Expense) | ||
| 7,333 | (8,136) | |
| Income (Loss) before provisions for income taxes | 216,480 | 63,262 |
| Income Tax Expense | ||
| Provision for |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the income tax expense for 2023 was $59,242. This figure reflects the provision for income taxes during that year.
It's important to note that Apricot Lane is taxed as an S corporation for federal income tax purposes. This means that the company itself does not pay federal corporate income tax on its income. Instead, the stockholders pay tax on their respective shares of the income. However, in California, there is a 1.5% franchise tax assessed on California taxable income, with a minimum tax of $800.
For a prospective franchisee, understanding the income tax structure of Apricot Lane is crucial. While the franchisor's tax obligations might not directly impact the franchisee's day-to-day operations, it provides insight into the overall financial health and tax strategies of the company. Franchisees should consult with their own financial advisors to understand how these tax implications might indirectly affect them.