Does Carbones Pizzeria provide for state income taxes in its income tax provision?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company does account for state income taxes in its income tax provision. Specifically, the FDD states that the company's provision for income taxes differs from applying the statutory U.S. federal income tax rate to income before income taxes because it provides for state income taxes. This indicates that state income taxes are a component considered when calculating the overall income tax expenses for Carbones Pizzeria.

For a prospective franchisee, this means that the financial statements of Carbones Pizzeria reflect the impact of state income taxes on the company's income. This is a standard accounting practice, as state income taxes are a real expense that affects a company's profitability. Franchisees reviewing the financial statements should, therefore, see that these taxes are factored into the overall financial picture.

It is important for potential franchisees to understand how state income taxes are accounted for, as this can affect the net income and overall profitability of Carbones Pizzeria. This information is useful for assessing the financial health and stability of the franchise system. Franchisees should consult with their own financial advisors to fully understand the implications of state income taxes on their investment.