What were the accrued state taxes for Beggars Pizza in 2021?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Restatement to Prior Period Financial Statements
As disclosed in Note 5, the Company elected to pay the Illinois Pass-Through Entity Tax ("PTE Tax") on behalf of
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the company elected to pay the Illinois Pass-Through Entity Tax (PTE Tax) on behalf of its members. The 2021 financial statements were restated to reflect this PTE Tax payment, which totaled $35,586. This amount was recorded as a distribution to members rather than as a miscellaneous expense, as it had been previously reported.
For a prospective Beggars Pizza franchisee, this indicates that the company's financial statements have been adjusted to accurately reflect tax payments made on behalf of its members. The restatement suggests a correction in how these payments were initially accounted for, moving them from a general expense category to a more specific distribution to members.
It's important for potential franchisees to understand how Beggars Pizza handles pass-through taxes, as this can affect the overall financial picture presented in the FDD. While this specific restatement relates to the franchisor's accounting practices, it highlights the importance of carefully reviewing the financial statements and understanding the tax implications for both the franchisor and the franchisee.