What was the combined Canadian federal and provincial statutory rate that Exit is compared to?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's effective tax rate for the year ended December 31, 2024, was 118.2%, compared to the combined Canadian federal and provincial statutory rate of 26.5%. The variance is primarily due to the impact of foreign operations, non-deductible expenses and change in valuation allowance.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the company's effective tax rate for the year ending December 31, 2024, was 118.2%. This is compared to the combined Canadian federal and provincial statutory rate of 26.5%.
The FDD indicates that the variance between Exit's effective tax rate and the statutory rate is primarily due to the impact of foreign operations, non-deductible expenses, and changes in valuation allowance. This suggests that Exit's tax situation is complex, potentially due to its international business activities.
For a prospective franchisee, this information highlights the importance of understanding the tax implications of operating an Exit franchise, especially if they plan to expand into different regions or countries. It may be beneficial to consult with a tax advisor to assess the potential tax liabilities and benefits associated with the franchise.