What was the federal current income tax expense for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ing fees and reimbursement of reasonable expenses. The current annual consulting fee of $3,360 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 $3,249 and $3,197 of consulting fees, which are included in general and administrative expense in our accompanying Consolidated Statements of Operatio
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the federal current income tax expense for the fiscal year 2023 was $3,424. This figure represents the amount of federal income taxes that Carls expects to pay for that year. It's important to note that this is the 'current' portion, meaning taxes due and payable for that period, as opposed to 'deferred' taxes, which relate to future tax obligations or benefits.
Understanding the breakdown of income tax expenses can be crucial for prospective franchisees. It provides insight into how Carls manages its tax obligations and can be used to assess the company's financial health. The FDD also includes figures for state and foreign income taxes, both current and deferred, allowing for a comprehensive view of Carls's tax liabilities.
It is important to note that Carls is included in the consolidated federal income tax returns of CKE Holding Corporation. However, for the purpose of determining income taxes attributable to Carls Restaurants and its subsidiaries, they prepare their income tax provision as if they were a separate taxpayer. This means that Carls makes income tax payments to their corporate parent based upon their separate return taxable income, and also makes income tax payments directly to federal, state, local, and foreign taxing jurisdictions.