According to Circle K's 2025 Franchise Disclosure Document, the company's balance sheet includes details on deferred income taxes as of April 27, 2025. The deferred income tax assets totaled $2,603,791, while the deferred income tax liabilities amounted to $2,396,831. These figures represent the current portion of deferred income taxes, reflecting the expected future tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

These deferred tax assets primarily arise from royalty and other receivables ($2,094,574), accounts payable and accrued liabilities ($16,371), and intangible assets ($492,846). The deferred income tax liabilities are mainly related to property and equipment ($2,396,831). The net effect of these deferred tax items results in a net deferred tax asset of $206,960.

For a prospective Circle K franchisee, understanding these deferred tax components is crucial for assessing the company's financial health and tax planning strategies. Deferred tax assets can be used to reduce future taxable income, while deferred tax liabilities may result in future tax obligations. Reviewing these figures in the context of Circle K's overall financial statements can provide valuable insights into the company's tax position and potential impact on future profitability.