What was the effective income tax rate for Caption By Hyatt in 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Statutory U.S. federal income tax rate | 21.0 % | 21.0 % | 21.0 % | |||
| State income taxes—net of federal tax benefit | 2.1 | 4.2 | 5.2 | |||
| Impact of foreign operations (1) | 2.0 | 15.3 | 6.6 | |||
| Impact of foreign transactions | (7.0) | — | — | |||
| Foreign asset restructuring | — | (15.3) | — | |||
| Change in valuation allowances | (3.1) | (7.7) | (58.6) | |||
| Tax contingencies | 2.0 | 9.4 | 6.2 | |||
| U.S. foreign tax credits valuation allowance | — | — | (4.7) | |||
| Other | 0.1 | 2.0 | (0.9) | |||
| Effective income tax rate | 17.1 % | 28.9 % | (25.2) % |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the effective income tax rate for the year ended December 31, 2024, was 17.1%. This rate is influenced by several factors, including the statutory U.S. federal income tax rate of 21.0%, state income taxes (net of federal tax benefit) of 2.1%, and the impact of foreign operations which added 2.0%.
Other factors that influenced the effective tax rate for Caption By Hyatt in 2024 include the impact of foreign transactions, which decreased the rate by 7.0%, and changes in valuation allowances, which further decreased the rate by 3.1%. Tax contingencies increased the rate by 2.0%, while other miscellaneous items added 0.1%. These various elements combined to produce the final effective income tax rate of 17.1%.
Prospective franchisees should understand that the effective income tax rate can vary significantly from year to year due to a variety of factors, including changes in tax laws, business operations, and accounting practices. It is important to consult with a financial advisor to understand the potential tax implications of investing in a Caption By Hyatt franchise.