What was the federal current tax expense for Itan for the year ending December 31, 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued payroll | $ | 4,743 | $ | 5,848 |
|---|---|---|---|---|
| Credit card payable | 100 | 42,852 | 25,551 | |
| $ | 47,595 | $ | 31,399 |
NOTE 8 CONTRACT LIABILITIES
The Company signed a ten year, non-refundable Area Development Agreement (ADA) in December 2023. Contract liabilities have been recognized for the full amount of the agreement of $115,000 as of December 31, 2023. The ADA is for
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the current federal tax expense for the year ending December 31, 2023, was $64,194. This is part of the broader income tax expense that Itan incurs, which also includes state taxes and deferred taxes. Understanding the components of Itan's tax expenses can provide insight into the company's profitability and financial management.
For a prospective Itan franchisee, this figure highlights the importance of understanding the tax obligations of the business. While this is a corporate-level expense for Itan, franchisees will also have their own tax obligations related to their individual franchise operations. It is important to consult with a financial advisor to understand the tax implications of owning and operating an Itan franchise.
Reviewing the tax-related notes in Itan's financial statements, such as Note 9 referenced in the document, can provide additional context and details about the company's tax positions and strategies. This information, combined with professional financial advice, can help potential franchisees make informed decisions about their investment.