Does Bft have any uncertain tax positions as of December 31, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Income taxes – As a single member LLC, the Company is considered a disregarded entity. As such, the Company itself is typically not subject to an income tax liability as the taxable income or loss of the Company is passed through to the Member. Therefore, no liability for federal income taxes has been included in the financial statements. The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740 prescribes a recognition threshold and measurement process for accounting for uncertain tax positions and provides guidance on various related matters such as derecognition, interest, penalties and required disclosures. As of December 31, 2024, the Company does not have any uncertain tax positions.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, as a single member LLC, the company is considered a disregarded entity for income tax purposes. This means that Bft itself is typically not subject to income tax liability, as the taxable income or loss is passed through to its member.
The FDD states that Bft accounts for uncertain tax positions in accordance with ASC 740, which provides guidance on recognition, measurement, derecognition, interest, penalties, and required disclosures for such positions.
As of December 31, 2024, Bft reports that it does not have any uncertain tax positions. This indicates that Bft believes its tax filings and positions taken are supportable and unlikely to be challenged by tax authorities.