What was the reported amount of accrued state taxes for Beggars Pizza in 2022?
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)
Based on the 2025 Beggars Pizza Franchise Disclosure Document, there is no specific mention of 'accrued state taxes' for 2022. The provided excerpts from the financial statements and auditor's report do not contain a line item or note detailing accrued state taxes. However, Note 5 discusses the Illinois Pass-Through Entity Tax (PTE Tax).
Note 5 mentions that Beggars Pizza elected to pay the Illinois Pass-Through Entity Tax (PTE Tax) on behalf of its members. The 2021 financial statements were restated to reflect the PTE Tax payment totaling $35,586 as a distribution to members, rather than as a miscellaneous expense. This restatement indicates that the company made a significant adjustment to its accounting practices regarding state tax payments.
A prospective franchisee should inquire with Beggars Pizza about the specific amount of state taxes accrued and paid in 2022, as well as how these taxes are typically handled and reported. Understanding the tax obligations and accounting practices related to state taxes is crucial for assessing the financial health and stability of the franchise.