What was the U.S. federal statutory rate for Dq Treat in 2023?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| U.S. federal statutory rate | 21.00 % | 21.00 % | 21.00 % |
| State income tax—net of federal effect | 2.77 | 2.90 | 2.86 |
| Foreign income tax | 0.58 | 0.82 | 0.88 |
| Other—net | (0.14) | (0.52) | (0.54) |
| Consolidated effective tax rate | 24.21 % | 24.20 % | 24.20 % |
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, the U.S. federal statutory rate in 2023 was 21.00%. This rate is used in the calculation of the company's consolidated effective tax rate. The table also shows the state income tax (net of federal effect), foreign income tax, and other net taxes for 2023. These figures provide insight into how Dq Treat calculates its overall tax burden.
For a prospective franchisee, understanding these rates can be helpful in assessing the financial health and tax strategies of Dq Treat. While franchisees do not directly pay the corporation's income taxes, the company's profitability, which is affected by these rates, can influence the support and resources available to franchisees. It is important to note that these are statutory rates and the actual taxes paid may vary due to deductions, credits, and other factors.
Reviewing the trend of these rates over the three years (2022-2024) can also provide a sense of the stability and predictability of Dq Treat's tax situation. Significant fluctuations could indicate changes in tax laws or the company's financial strategies, which could indirectly affect franchisees. Therefore, while this information is high-level, it contributes to a broader understanding of the financial context in which Dq Treat operates.