What was the income tax expense for Carbones Pizzeria?

According to the 2025 FDD, Carbones Pizzeria's income tax expense varies across different fiscal years. For the year ended October 31, 2022, the income tax expense was $56,702. In the subsequent year, ending October 31, 2023, the provided excerpts do not explicitly list an income tax expense, but they do mention the company accounting for income taxes under the asset and liability method. For the year ended October 31, 2024, instead of an expense, there was an income tax benefit of ($68,000).

These figures are crucial for prospective Carbones Pizzeria franchisees as they provide insight into the company's profitability and tax management strategies. Understanding the fluctuations in income tax expenses or benefits can help franchisees assess the financial health and stability of the franchisor. It's important to note that these figures reflect the financial performance of the company-owned restaurants and the overall franchise operations, which may not directly translate to the performance of an individual franchise unit.

Potential franchisees should investigate the reasons behind these fluctuations and how they might impact their own business. It would be prudent to consult with a financial advisor to interpret these figures in the context of their investment and operational plans. Furthermore, franchisees should inquire about any potential tax liabilities or benefits that may arise from operating a Carbones Pizzeria franchise, as well as the franchisor's strategies for minimizing tax burdens and maximizing profitability.