What is Chesters' process for assessing uncertain tax positions, and what was the company's determination regarding substantiation of these positions as of December 31, 2024 and 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company assesses its uncertain tax positions for the likelihood that they would be overturned upon Internal Revenue Service (IRS) examination or upon examination by state taxing authorities. The Company has assessed its uncertain tax positions and determined that it does not have any positions at December 31, 2024 and 2023, that it would be unable to substantiate. The Company has filed tax returns through 2023.
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters assesses its uncertain tax positions by evaluating the likelihood that these positions would be overturned during an examination by the Internal Revenue Service (IRS) or by state taxing authorities.
As of December 31, 2024 and 2023, Chesters determined that it did not have any uncertain tax positions that it would be unable to substantiate. This means that Chesters believes it has sufficient documentation and legal basis to support its tax positions should they be challenged by tax authorities.
Chesters had filed tax returns through 2023, indicating that the company is current with its tax filing obligations. This assessment provides potential franchisees with insight into Chesters's approach to tax compliance and its confidence in the accuracy and supportability of its tax filings.