What was the amount of nondeductible share-based compensation for Carls in fiscal year 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ith 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:
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Current: | ||
| Federal | $ 11,248 | $ 3,424 |
| State | 3,066 | 858 |
| Foreign | 5,926 | 4,866 |
| 20,240 | 9,148 | |
| Deferred: | ||
| Federal | (4,512) | ( |
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 2024 was $446. This figure represents expenses related to share-based compensation that Carls cannot deduct for income tax purposes.
The table in the FDD provides a breakdown of various factors contributing to Carls's total income tax expense. Nondeductible share-based compensation is listed as one of these factors, with the $446 figure for fiscal year 2024 and a comparative figure of $163 for fiscal year 2023.
For a prospective franchisee, this information is unlikely to have a direct impact on their operations. However, it provides insight into Carls's overall financial management and tax strategy. Understanding these aspects of the franchisor's financial health can be valuable for franchisees as it reflects on the stability and long-term viability of the franchise system.