How much did Bw Premier Collection spend on non-deductible meals and entertainment in 2023?
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 company's expenses for non-deductible meals and entertainment in 2023 totaled $775,000. This figure is part of the broader income tax provision details provided in Item 23 of the FDD. The document also shows that in 2022, these expenses were $236,000.
The fact that these expenses are classified as "non-deductible" means that Bw Premier Collection cannot deduct the full amount from its taxable income. This distinction is important for understanding the company's overall tax obligations and financial performance. Franchisees reviewing the FDD should pay attention to these types of non-deductible expenses as they can impact the company's profitability and, potentially, the resources available for supporting the franchise system.
For a prospective franchisee, this information provides insight into Bw Premier Collection's financial management and tax strategies. While non-deductible expenses are a normal part of business operations, significant fluctuations from year to year, as seen in the increase from 2022 to 2023, might warrant further inquiry to understand the underlying causes and their implications for the franchise system's financial health.