How does Bb.Q Chicken account for income taxes?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Feb 28, 25 LIABILITIES & EQUITY Liabilities Current Liabilities Total Accounts Payable 366,876.76 Total Credit Cards 138,969.67 Other Current Liabilities Unearned Revenue 255,000.00 Loan Payable 2,342,727.71 Payroll Liabilities 8,012.00 Corporate Tax Payable -162,414.43 Interest Payable 282,499.82 Lease Liabilities - ST 254,193.74 GiveX Liability 82,378.54 Royalty Payable 3,752,896.69 GC Payable -80.00 Sales Tax Payable -6,539.36 Sales Tax Payable 2 5,062.14 Total Other Current Liabilities 6,813,736.85 Total Current Liabilities 7,319,583.28
- 7.1.4 You have sole responsibility for the performance of all obligations arising out of the operation of your business pursuant to this Agreement, including, but not limited to, the payment when due of any and all taxes levied or assessed by reason of such operation.
Basis of presentation:
The accompanying financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (US" GAAP").
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the balance sheet as of February 28, 2025, shows "Corporate Tax Payable" listed as -162,414.43 under current liabilities. This indicates that Bb.Q Chicken accounts for corporate income taxes as a liability on its balance sheet. The negative value may represent an overpayment or credit.
Additionally, the franchisee is responsible for the payment of all taxes levied or assessed due to the operation of their Bb.Q Chicken business. This includes ensuring timely reporting and payment of all taxes as per federal, state, and local laws.
Bb.Q Chicken's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). This means that Bb.Q Chicken follows standardized accounting practices for recognizing and reporting income taxes, ensuring transparency and comparability in its financial reporting.