What was the deferred tax asset amount related to insurance for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Amounts for deferred tax assets and liabilities are as follows:
| Deferred income tax asset | $ 7,800 | $ 9,300 | |
|---|---|---|---|
| Deferred income tax liability | (500) | (7,300) | |
| Total net deferred income tax asset | $ 7,300 | $ 2,000 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
Based on the 2025 FDD, the information provided does not specify a deferred tax asset amount related to insurance for Crepe De Licious. However, the FDD does provide information on deferred tax assets and liabilities in general.
The document states that temporary differences give rise to net deferred income tax assets/liabilities, primarily from credit loss expense, depreciation, and lease expense. These items are recognized differently for financial reporting and income tax purposes. For example, the deferred income tax asset was $7,800 in one year and $9,300 in another year. The total net deferred income tax asset was $7,300 and $2,000 for those same years.
While the FDD lists the amounts for total deferred tax assets, it does not break down these amounts by specific categories such as insurance. A prospective franchisee should ask Crepe De Licious for a detailed breakdown of the deferred tax assets, including any portion related to insurance expenses, to gain a clearer understanding of the company's financial position and tax strategy.