What was the amount of cash paid for income taxes by Burros Fries during the year?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
tate income taxes on their share of the Company's taxable income.
The Company's provision for income taxes for the year ended December 31, 2022 is $2,137 and represents the statutory California S Corporation Franchise Tax of 1.5% applicable to S Corporations. The Company recognized an income tax benefit of $12,211 for the year ended December 31, 2023. The benefit is a result of the Company making an S election for the 2021 tax year after the Company had a
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Burros Fries does not explicitly state the amount of cash paid for income taxes for any specific year. However, it does provide some information regarding income taxes.
Specifically, the FDD mentions that for the year ended December 31, 2022, Burros Fries's provision for income taxes was $2,137, representing the statutory California S Corporation Franchise Tax of 1.5% applicable to S Corporations. Additionally, for the year ended December 31, 2023, Burros Fries recognized an income tax benefit of $12,211 due to making an S election for the 2021 tax year after having already provided for taxes at higher statutory corporate tax rates.
While these figures provide insight into the company's tax liabilities and benefits, they do not specify the actual cash paid for income taxes. For a prospective franchisee, understanding the cash paid for income taxes is crucial for assessing the company's financial health and stability. Therefore, it would be prudent to request this information from Burros Fries directly to gain a clearer picture of their tax obligations and cash flow management.