What is the primary source of deferred income taxes for Carbones Pizzeria?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, deferred income taxes arise from temporary differences in how income and expenses are recognized for financial statement and income tax reporting. For the year ended October 31, 2022, the primary source of these differences was net operating losses. The document also states that the company utilized all net operating losses in the year ended October 31, 2022.

Deferred income taxes can impact a franchisee by affecting the overall tax liability of the company, which in turn could influence financial decisions and strategies. Understanding the sources of these deferred taxes helps potential franchisees assess the financial health and tax planning strategies of Carbones Pizzeria.

It's important to note that while net operating losses were the primary source in 2022, the FDD does not specify the primary source of deferred income taxes for the years ended October 31, 2023, or October 31, 2024. A prospective franchisee should inquire with Carbones Pizzeria about the current primary sources of deferred income taxes and how these are being managed, as well as how changes in tax laws could affect the company's financial position.