What was the total amount of deferred tax liabilities for Dq Treat as of December 31, 2024?

According to Dq Treat's 2025 Franchise Disclosure Document, the total deferred tax liabilities as of December 31, 2024, were $33,491. This figure represents the sum of deferred tax liabilities related to goodwill and other intangibles ($27,871), fixed assets ($3,256), operating lease assets ($1,160), and other liabilities ($1,204).

Deferred tax liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases. These liabilities represent the future tax obligations that Dq Treat will have to pay when these temporary differences reverse. For example, the deferred tax liability related to goodwill and other intangibles suggests that the tax value of these assets is lower than their book value, leading to a future taxable income when these assets are amortized or disposed of.

For a prospective franchisee, understanding deferred tax liabilities is crucial for assessing the long-term financial health and tax obligations of Dq Treat. While these liabilities do not represent an immediate cash outflow, they indicate future tax obligations that could impact the company's profitability and cash flow. Franchisees should consider these liabilities when evaluating the overall financial stability and tax planning strategies of Dq Treat.

It's also worth noting that the FDD includes details on deferred tax assets, which represent future tax benefits. As of December 31, 2024, Dq Treat's total deferred tax assets were $15,839. The difference between deferred tax assets and deferred tax liabilities results in a net deferred tax liability of $17,652, which is also disclosed in the FDD. This net figure provides a more comprehensive view of Dq Treat's future tax obligations.