What was the amount of deferred provision (benefit) for Flowerama in 2022?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
Company contributions may be made at the discretion of the Board of Directors, limited to the maximum amount deductible for income tax purposes. The Company did not make any matching contributions to the plan during either of the 52-week period ended July 2, 2023 or the
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–77)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, the deferred provision (benefit) for 2022 was reported as ($43,813). This figure represents a benefit, as indicated by the parentheses, rather than a provision.
This deferred provision (benefit) relates to income taxes and arises from temporary differences between how Flowerama accounts for certain items for financial reporting purposes versus tax purposes. These differences will reverse in future years, impacting the company's tax liability.
For a prospective franchisee, this specific figure may not have a direct impact on their day-to-day operations. However, it's part of understanding the overall financial health and tax strategy of Flowerama. Reviewing these figures over several years can reveal trends and insights into the company's financial management. Franchisees may want to discuss these figures with a financial advisor to understand the implications for their own business decisions.