What was the Itan income tax expense in 2022?
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 income tax expense for the year 2022 was $117,133. This figure represents the total amount of income taxes, including both federal and state taxes, that Itan incurred during that year. This expense is a significant factor in determining Itan's net earnings for the year.
Specifically, the income tax expense includes both current and deferred taxes. Current taxes are the amounts payable for the current tax year, while deferred taxes reflect the future tax consequences of events that have been recognized in Itan's financial statements or tax returns. In 2022, Itan's income tax expense comprised federal current taxes of $51,157, state current taxes of $25,590, federal deferred taxes of $27,628, and state deferred taxes of $12,758.
For a prospective Itan franchisee, understanding the income tax expense is crucial for assessing the overall profitability and financial health of the company. While franchisees do not directly pay Itan's corporate income taxes, the company's financial stability can impact the support and services it provides to franchisees. Reviewing trends in income tax expenses over multiple years, as presented in the FDD, can offer insights into Itan's financial performance and tax planning strategies.