What was the deferred tax asset amount related to supplies for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Temporary differences that give rise to the net deferred income tax asset/liability consist primarily of credit loss expense, depreciation and lease expense, all of which are recognized differently for financial reporting and income tax purposes.
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 Franchise Disclosure Document, the excerpts provided do not specify a deferred tax asset amount related to supplies for Crepe De Licious. However, the document does provide information on deferred income tax assets and liabilities in general.
Specifically, the FDD mentions that temporary differences give rise to net deferred income tax assets/liabilities, consisting primarily of credit loss expense, depreciation, and lease expense, which are recognized differently for financial reporting and income tax purposes. For example, one table shows a "Deferred income tax asset" of $7,800 and $9,300 for two unspecified periods, and a "Total net deferred income tax asset" of $7,300 and $2,000 for the same periods.
To determine the deferred tax asset amount specifically related to supplies, a prospective Crepe De Licious franchisee should ask the franchisor for a detailed breakdown of the deferred tax assets, including the portion attributable to supplies. This information would provide a clearer picture of the company's financial position and tax strategy.