What was the 'Tax Liabilities' amount for Fast Fix Jewelry And Watch Repairs in 2022?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
ontinued
The types of temporary differences and their related tax effects that give rise to the deferred tax assets and deferred tax liabilities are as follows as of December 31:
| 2023 | 2022 | |
|---|---|---|
| Deferred tax assets: | ||
| Goodwill | $ 23,925 | $ 32,382 |
| Prepaid expenses | 4,831 | - |
| Accrued bonuses | 515 | 21,527 |
| Accrued management fees | 50,099 | E |
| Federal and state NOL Carry Forward | 1,554 | 1,461 |
| Leases | 33,774 | 22,573 |
| Provision for credit losses | 8,297 | H |
| Deferred revenue |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, the deferred tax liabilities related to property and equipment were approximately ($38,660) in 2022. This figure represents the liabilities associated with the timing differences between when these assets are depreciated for accounting purposes versus when they are depreciated for tax purposes. These liabilities are considered 'deferred' because they are expected to result in future tax obligations as the temporary differences reverse over time.
For a prospective Fast Fix Jewelry And Watch Repairs franchisee, understanding deferred tax liabilities is crucial for assessing the overall financial health and tax planning strategies of the company. While deferred tax liabilities are not immediate cash obligations, they indicate future tax implications that could affect the franchisee's profitability and cash flow. It is important to note that these figures are related to property and equipment only and do not represent the entirety of Fast Fix Jewelry And Watch Repairs's tax liabilities.
Franchisees should consult with a financial advisor to fully understand the implications of deferred tax liabilities and how they might impact their individual tax situations. Reviewing the complete financial statements and notes, as well as seeking clarification from Fast Fix Jewelry And Watch Repairs on their tax strategies, will provide a more comprehensive understanding of the company's financial position.