What was the total value of deferred tax assets for Dq Treat in 2023?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------|-------------------|------------| | Accrued salaries and benefits | $21,255 | $19,259 | | Charity donations collected from franchisees | 6,902 | 6,640 | | Deposits | 8,098 | 11,984 | | Accrued remodel incentives | 196 | 237 | | Other | 438 | 493 | | Total | $36,889 | $38,613 |
Other long-term liabilities as of December 31 consisted of the following:
| 2024 | 2023 | |
|---|---|---|
| Deferred compensation | $27,222 | $24,858 |
| Incentive compensation | 12,755 | 16,564 |
| Accrued remodel incentives Other | 173 | 268 |
| 5 | 12 | |
| Total | $40,155 | $41,702 |
7. INCOME TAXES
The provision for income
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 Dq Treat's 2025 Franchise Disclosure Document, the total value of deferred tax assets for the company in 2023 was $17,830. Deferred tax assets arise from temporary differences between the book value of assets and liabilities and their tax bases, essentially representing future tax benefits. These assets include items such as employee benefits, allowances for notes/accounts receivable/inventory, operating lease liabilities, deferred revenue, and capitalized research and development.
The deferred tax assets related to employee benefits were valued at $12,497, while notes/accounts receivable/inventory allowances accounted for $205. Operating lease liabilities contributed $2,043, deferred revenue added $597, and capitalized research and development amounted to $1,039. Additionally, there was $1,449 listed under 'Other' deferred tax assets.
For a prospective Dq Treat franchisee, understanding these figures is crucial for assessing the company's financial health and tax strategies. Deferred tax assets can be a valuable resource, potentially reducing future tax liabilities and improving cash flow. However, their realization depends on the company's ability to generate sufficient taxable income in the future. Franchisees should consider these factors when evaluating the overall financial stability and potential profitability of a Dq Treat franchise.