What was the income tax provision for Bw Premier Collection in 2022?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| income tax provision: | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| (in thousands) | $ % | $ | % | |
| Income taxes computed at statutory rates | $ 24,478 21.0% | $ 22,042 | 21.0% | |
| State taxes, net of federal benefit | 4,445 3.8% | 3,364 | 3.2% | |
| Non-deductible meals and entertainment | 775 0.7% | 236 | 0.2% | |
| Other non-deductible items | 272 0.2% | 276 | 0.3% | |
| Valuation allowance | 150 0.1% | 912 | 0.9% | |
| Foreign-derived intangible income | (1,214) (1.0%) | (819) | (0.8%) | |
| Research and development and foreign tax credit | (1,041) (0.9%) | (7,802) | (7.4%) | |
| Other | (367) (0.3%) | (1,040) | (1.0%) | |
| Income tax provision | $ 27,498 23.6% | $ 17,169 | 16.4% |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the income tax provision for the year 2022 was $17,169 (in thousands). This figure represents the total amount Bw Premier Collection allocated for income taxes during that fiscal year. The income tax provision is a component of the overall expenses deducted from total revenues to arrive at the net income for Bw Premier Collection.
Specifically, the FDD breaks down the income tax provision into several components. These include income taxes computed at statutory rates ($22,042), state taxes net of federal benefit ($3,364), non-deductible meals and entertainment ($236), other non-deductible items ($276), valuation allowance ($912), foreign-derived intangible income (-$819), research and development and foreign tax credit (-$7,802), and other items (-$1,040). These individual items sum to the total income tax provision of $17,169.
For a prospective franchisee, understanding the income tax provision of the franchisor can offer insights into the franchisor's profitability and financial management. While franchisees do not directly pay the franchisor's income taxes, the franchisor's financial health can impact the support and services they provide to franchisees. A lower tax provision might indicate effective tax planning or lower profitability, while a higher provision suggests the opposite. Therefore, it's essential to consider this figure in the context of the franchisor's overall financial performance.