According to Card My Yard's 2025 Franchise Disclosure Document, the total deferred benefit for income taxes in 2024 was $565,338. This figure is derived from the sum of the federal deferred benefit of $453,482 and the state deferred benefit of $111,856.

Deferred income taxes arise from temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. These differences result in taxable or deductible amounts in future years when the related assets are recovered or liabilities are settled. A deferred tax asset represents a future tax benefit, while a deferred tax liability represents a future tax obligation.

For a prospective Card My Yard franchisee, understanding these figures is crucial for assessing the company's financial health and stability. While franchisees are not directly involved in the franchisor's income tax management, the franchisor's financial performance can impact the support and resources available to franchisees. Reviewing these figures over multiple years, if available, can provide a more comprehensive view of the franchisor's tax strategies and their potential impact on the franchise system.