What was the amount of nondeductible share-based compensation for Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
pectively.
The management advisory and consulting services agreement also provides that Roark may earn future fees in connection with certain business acquisition transactions, an initial public offering or a change of control transaction. The management advisory and consulting services agreement includes customary exculpation and indemnification provisions in favor of Roark and its affiliates.
NOTE 20 — INCOME TAXES
Income tax expense consisted of the following:
| Fise | cal 2023 | Fig | scal 2022 | |
|---|---|---|---|---|
| Current: | ||||
| Federal | $ | 3,424 | $ | 3,828 |
| State | 858 | 1,027 | ||
| For |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the nondeductible share-based compensation for fiscal year 2022 was $180,000. This figure is part of the broader income tax expense details provided in the financial statements. Share-based compensation typically involves granting stock options or other equity-based awards to employees, and the portion that is considered nondeductible can impact the company's overall tax liability.
For a prospective franchisee, understanding these figures might not directly impact their day-to-day operations. However, it provides insight into Carls's financial management and how it handles executive compensation and tax strategies. This can be an indicator of the financial health and sophistication of the franchise system.
It's important to note that nondeductible expenses can affect a company's profitability and tax obligations, which indirectly affects the stability and resources available to support franchisees. While this specific figure might seem abstract, it's part of a larger picture that contributes to the overall financial assessment of the franchise opportunity.