For Dq Treat, which tax years are subject to examination by the Internal Revenue Service?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company is subject to taxation in the United States and various state and foreign jurisdictions. The tax years for 2012 through 2024 are subject to examination by the Internal Revenue Service. The expiration of the statute of limitations related to the various state and foreign income tax returns that the Company files varies by jurisdiction; in general, the years 2014 through 2024 remain open for state purposes.
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 tax years from 2012 through 2024 are subject to examination by the Internal Revenue Service (IRS). Additionally, the years 2014 through 2024 remain open for state purposes, although the expiration of the statute of limitations varies by jurisdiction.
This means that the IRS could potentially audit Dq Treat's tax filings for these years, which is a standard practice for businesses operating in the United States. Franchisees should be aware that while this examination primarily concerns Dq Treat's corporate taxes, any issues discovered could indirectly affect the financial health and stability of the franchise system.
Prospective franchisees should consider this information as part of their due diligence, understanding that tax audits are a normal part of business operations and that Dq Treat is undergoing regular scrutiny by tax authorities. It is advisable to consult with a financial advisor to understand the full implications of these tax matters.