What was the federal current income tax expense for Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
c planning and other advisory and consulting services provided to us by Roark and its affiliates, Roark receives consulting fees and reimbursement of reasonable expenses. The current annual consulting fee of
$3,262 is payable in equal quarterly installments and subject to an increase of three percent per year during the ten year term of the agreement. We recorded $3,197 and $3,106 of
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the current federal income tax expense for fiscal year 2022 was $3,828. This figure represents the amount of federal income taxes that Carls expects to pay for that fiscal year. It's important to note that this is just one component of the total income tax expense, which also includes state and foreign taxes, as well as deferred tax expenses.
For a prospective franchisee, understanding the components of income tax expense can be helpful in assessing the overall profitability and tax obligations of the franchise. The current portion of income tax expense reflects the immediate tax liabilities, while deferred taxes relate to future tax obligations or benefits.
It is important to note that Carls is included in the consolidated federal income tax returns of CKE Holding Corporation. For the purpose of determining the income taxes attributable to CKE Restaurants and its subsidiaries, they prepare their income tax provision as if they were a separate taxpayer. As a result, they make income tax payments to their corporate parent based upon their separate return taxable income and additionally make income tax payments directly to federal, state, local and foreign taxing jurisdictions.