What was the total provision for income taxes for Chem Dry in 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | (As Restated) | 2021 | |
|---|---|---|---|
| Income tax (recovery) expense, computed at 21 | |||
| percent of pretax income | $(9,416) $ | (830) $ | 873 |
| Permanent differences | 9,568 | - | - |
| State income tax expense (recovery) | 168 | (42) | 257 |
| Other | 157 | (997) | 89 |
| Total provision for income taxes | $477 $ | (1,869) $ | 1,219 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the total provision for income taxes in 2021 was $1,219. This figure represents the sum of income tax expenses, permanent differences, state income tax expenses, and other tax-related items for that year.
For a prospective franchisee, understanding the franchisor's historical tax obligations can offer insights into the company's overall financial health and profitability. While franchisees are responsible for their own business's tax obligations, the financial stability of the parent company can impact the support and resources available to franchisees.
It's important to note that this figure is a consolidated value for the entire Chem Dry organization. Individual franchisee tax situations will vary based on their specific revenues, expenses, and deductions. Franchisees should consult with a qualified tax professional to understand their own tax liabilities and obligations.
Reviewing the trends in Chem Dry's income tax provisions over the three years presented (2021-2023) may provide a more comprehensive view of the company's tax management and financial performance. Note 11 in the FDD provides further details regarding income taxes.