What was the value of deferred tax assets for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ntories and accounts receivables recorded on the financial statements. The components of the net deferred tax assets recognized in the accompanying balance sheets at December 31, 2023
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the value of deferred tax assets in 2023 was $1,268,102. This figure is the net value after deducting a valuation allowance. The deferred tax assets are recognized for deductible temporary differences and loss carryforwards.
Deferred tax assets arise from differences in the timing of when assets are recovered or liabilities are settled for tax and financial reporting purposes. These differences primarily stem from state income taxes, net operating loss carryforwards, depreciation expenses, and various accruals and reserves for items like inventories and accounts receivables.
For a prospective Bb.Q Chicken franchisee, understanding deferred tax assets is crucial for assessing the financial health and tax planning strategies of the company. It indicates how the company manages its tax obligations and utilizes available deductions and carryforwards to minimize its tax liabilities. This can impact the overall profitability and financial stability of the franchise system.