What was the total current state and local income tax for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, which were capitalized and are recorded as a direct deduction to long-term debt and $0.3 million in debt issuance costs recorded in other assets on the consolidated balance sheets. As of December 31, 2023, the Company was in compliance with the financial covenants required by the Credit Agreement.
Note 6 - Income Taxes
The components of income before provision for income taxes were as follows (in thousands):
| For the years ended December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | ||||
| Domestic | $ 2,077 | $ | 14,051 | ||
| Foreign | 189 | 142 | |||
| Total | $ 2,266 | $ | 14,193 |
The components of the Company's provision for income taxes were as follows (in thousands):
| 2023 | For the years ended December 31, 2022 | ||
|---|---|---|---|
| Current: | |||
| Federal | $ — | $ | — |
| State and local | 638 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total current state and local income tax for the year 2023 was $638. This figure represents the amount of state and local income taxes that Benihana expects to pay for the fiscal year, as opposed to deferred taxes which relate to future tax obligations.
For a prospective franchisee, understanding the tax obligations of the franchisor can provide insight into the financial health and stability of the company. While franchisees are responsible for their own business's tax obligations, the franchisor's tax management can reflect overall business acumen and financial planning.
It's important to note that this figure is specific to Benihana's corporate tax obligations and does not directly translate to the tax responsibilities of individual franchisees. Franchisees should consult with their own financial advisors to understand their specific state and local tax obligations.