What was the total federal tax expense, including both current and deferred taxes, for Itan in 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 company's federal tax expenses for 2023 included both current and deferred taxes. The current federal tax was $64,194, and the deferred federal tax was $1,772. Therefore, the total federal tax expense for Itan in 2023 was $65,966.
For a prospective Itan franchisee, understanding these figures provides insight into the company's tax obligations and financial performance. It is important to note that these figures reflect Itan's federal tax expenses as a company and may not directly correlate to an individual franchisee's tax liabilities, which will depend on their specific business operations and financial situation.
Reviewing these tax figures in conjunction with other financial statement data, such as revenue and operating expenses, can help potential franchisees assess Itan's overall profitability and financial health. Additionally, comparing these figures to previous years can reveal trends in Itan's tax obligations and financial performance over time. Franchisees should consult with a financial advisor to understand the full implications of these figures.