What was the total income tax expense for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- | 4,320,068 | | Noncontrolling Interest in Subsidiaries | | 32,360 | 2 | 26,049 | | Total Stockholders' Equity | | 5,497,843 | _ | 4,346,117 | | Total Liabilities and Stockholders' Equity | $ | 11,921,252 | $ | 10,518,455 |
| 2023 | (restated) 2022 | |
|---|---|---|
| FRANCHISE INCOME | VI SELECTION OF | |
| Franchise Fees | $ 602,489 | $ 787,181 |
| Royalty Fees | 3,888,131 | 3,718,035 |
| MAC Income | 671,456 | 630,396 |
| Management Software Fees | 142,233 | 144,550 |
| Other Income | 53,250 | 24,000 |
| Total Franchise Income | 5,357,559 | 5,304,162 |
| GENERAL AND ADMINISTRATIVE EXPENSE | 4,783,886 | 5,367,347 |
| OTHER INCOME (EXPENSE) | America | |
| Management Fee from Related Party | 672,103 | 477,564 |
| Other Expense | (1,698) | 2 |
| Other Income | 1,565 | 2,321 |
| Total Other Income | 671,970 | 479,885 |
| NET INCOME BEFORE INCOME TAXES | 1,245,643 | 416,700 |
| PROVISION FOR INCOME TAXES | 93,917 | 259,914 |
| NET INCOME | 1,151,726 | 156,7 |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the provision for income taxes was $93,917 in 2023 and $259,914 in 2022. These figures reflect the company's income tax obligations for those years.
For a prospective franchisee, understanding these tax figures is crucial for assessing the overall financial health and profitability of Expense Reduction Analysts. The income tax expense directly impacts the net income, which is a key indicator of the company's financial performance. A significant change in income tax expense from year to year, as seen here, could be due to various factors, such as changes in profitability, tax laws, or accounting practices.
It's important to note that these figures are specific to Expense Reduction Analysts, Inc. and its subsidiaries, and may not directly translate to the tax obligations of individual franchisees. However, they provide valuable insight into the financial management and tax planning strategies of the company. Franchisees should consult with their own financial advisors to understand the tax implications of operating an Expense Reduction Analysts franchise and how it may affect their individual financial situations.
Furthermore, the FDD also mentions that the 2022 financial statements have been restated to correct an error in accounting for capitalized software. This highlights the importance of carefully reviewing the audited financial statements and understanding any adjustments that have been made, as they can impact the accuracy and reliability of the financial information presented.