For Auntie Annes, what was the amount of total deferred tax liabilities as of December 25, 2022?

According to Auntie Annes's 2024 Franchise Disclosure Document, the total deferred tax liabilities as of December 25, 2022, was $(149,237). This figure represents the net amount of deferred tax liabilities related to intangible assets ($(128,199)), operating lease assets ($(18,535)), prepaid costs and expenses ($(2,250)), and other ($(253)). There were no deferred tax liabilities related to depreciable assets and research and development costs as of this date.

Deferred tax liabilities arise because of temporary differences between the book value of an asset or liability and its tax basis. These liabilities represent the future tax obligations that Auntie Annes will have to pay when these temporary differences become taxable. For a franchisee, understanding these figures in the FDD can provide insight into the financial health and tax planning strategies of the franchisor.

It is important to note that these deferred tax liabilities are distinct from the long-term deferred tax liabilities reported elsewhere in the FDD. The long-term deferred tax liabilities as of December 25, 2022, were $76,872. This discrepancy highlights the complexity of tax accounting and the importance of reviewing the complete financial statements and related notes for a comprehensive understanding of Auntie Annes's financial position. Prospective franchisees should consult with a financial advisor to fully understand the implications of these figures.