What was the income tax benefit for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Royalties | $ 980,131 |
|---|---|
| Company restaurant sales | 726,642 |
| Advertising fund revenues | 289,604 |
| Rebate revenue | 159,266 |
| Total revenues | 2,155,643 |
| Cost of company restaurant sales | |
| Food and beverage | 226,979 |
| Labor | 624,395 |
| Direct expenses | 191,618 |
| Total cost of company restaurant sales | 1,042,992 |
| Operating expenses | |
| Marketing and advertising | 237,855 |
| General and administrative | 735,475 |
| Total operating expenses | 973,330 |
| Income from operations | 139,321 |
| Other income (expense) | |
| Interest income | 35,160 |
| Interest expense | (4,108) |
| Other income | (39,824) |
| Loss on disposition of property and equipment | (123) |
| Total other in |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the company experienced an income tax benefit of $68,000. This figure is derived from the consolidated financial statements for the period ending February 28, 2025. The income tax benefit contributed to a net income of $198,426 for the company during this period.
An income tax benefit typically arises when a company has deductible expenses or losses that reduce its taxable income, resulting in a lower tax liability or even a refund. This can be due to various factors, such as net operating losses, tax credits, or other deductions. The presence of an income tax benefit suggests that Carbones Pizzeria was able to reduce its tax obligations, thereby increasing its overall profitability.
Prospective franchisees should note that this income tax benefit is specific to the company's financial situation during the reported period. It is not necessarily indicative of future tax benefits or the financial performance of individual franchise locations. Franchisees should consult with their own financial advisors to understand the tax implications of owning and operating a Carbones Pizzeria franchise.