According to Exit's 2025 Franchise Disclosure Document, the company's net deferred tax asset in 2022 was $270,000. Deferred tax assets arise from temporary differences between the book value of assets and liabilities and their tax bases. These assets are essentially tax deductions or credits that will reduce taxable income in future years.

It is important to note that the value of a deferred tax asset is not guaranteed. Exit must evaluate the likelihood that it will actually be able to use these deferred tax assets in the future. If Exit determines that it is more likely than not that some or all of the deferred tax assets will not be realized, it must establish a valuation allowance to reduce the carrying value of the asset.

For prospective franchisees, this figure provides insight into Exit's past tax strategies and financial planning. Understanding deferred tax assets can be complex, so consulting with a financial advisor is recommended to fully grasp the implications for Exit's financial health.