What was the gross deferred tax liabilities for Clear Pest Pros as of December 31, 2024?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the company's gross deferred tax liabilities as of December 31, 2024, were $(6,870). This figure represents the total deferred tax liabilities before considering any offsetting deferred tax assets. Deferred tax liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases. These differences result in taxable amounts in future years when the assets are recovered or the liabilities are settled.

Specifically, the components contributing to the gross deferred tax liabilities include intangibles, inventory capitalization, property and equipment, prepaid expenses, and right-of-use assets. The largest component is intangibles, which accounts for $(5,613) of the total $(6,870). These deferred tax liabilities indicate that Clear Pest Pros expects to pay more in taxes in the future as these temporary differences reverse.

For a prospective Clear Pest Pros franchisee, understanding these deferred tax implications is crucial. While deferred tax liabilities are not immediate cash outflows, they represent future tax obligations that could impact the franchisee's profitability and cash flow. It is advisable for potential franchisees to consult with a financial advisor to fully understand the implications of these deferred tax liabilities and how they might affect their investment in the Clear Pest Pros franchise.