What was the deferred tax asset amount related to advertising for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
topic 952-606): Practical Expedient*. This revenue recognition guidance allows private company franchisors to use a practical expedient when identifying performance
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Crepe De Licious does not specifically state the deferred tax asset amount related to advertising. However, the FDD does provide information on the company's overall advertising costs and deferred income tax assets.
Specifically, the FDD mentions that advertising costs are expensed as incurred, with total advertising costs of $175 for the year ended December 31, 2023, and $4,052 for the year ended December 31, 2022. Additionally, the document includes a table that lists deferred income tax assets, but it does not break down the assets by category (such as advertising). The table shows a deferred income tax asset of $7,800 and $9,300 for two unspecified years, and a total net deferred income tax asset of $7,300 and $2,000 for the same years.
To determine the deferred tax asset amount specifically related to advertising, a prospective Crepe De Licious franchisee should ask the franchisor for a detailed breakdown of the deferred tax assets, specifying the portion attributable to advertising expenses. This information would provide a clearer picture of how advertising costs impact the company's deferred tax position.