What was the amount of income taxes payable by Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Royalties | $ 906,513 |
|---|---|
| Company restaurant sales | 765,521 |
| Advertising fund revenues | 268,596 |
| Rebate revenue | 140,146 |
| Total revenues | 2,080,776 |
| Cost of company restaurant sales | |
| Food and beverage | 288,977 |
| Labor | 602,817 |
| Direct expenses | 174,042 |
| Total cost of company restaurant sales | 1,065,836 |
| Operating expenses | |
| Marketing and advertising | 278,545 |
| General and administrative | 571,564 |
| Total operating expenses |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, Carbones Pizzeria's provision for income taxes for the year ended October 31, 2023, was $100,000. This figure represents the company's estimated income tax expense for that fiscal year. It is important to note that this is a 'provision,' meaning it is an estimated amount set aside to cover income tax liabilities. The actual amount of income taxes payable could differ.
This provision for income taxes affects Carbones Pizzeria's net income, which was reported as $179,901 for the same period. The income before the provision for income taxes was $279,901. This means that after accounting for the estimated income taxes, the company's profit was approximately $179,901.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and profitability of Carbones Pizzeria. It provides insight into how the company handles its tax obligations and how these obligations impact its overall financial performance. Reviewing these figures over several years, if available, would give a more comprehensive understanding of the company's tax strategies and their effect on net income.