What was Itan's total 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 company's income tax expense for 2022 was $117,133. This figure represents the total amount of income taxes, including both current and deferred taxes, that Itan incurred during that fiscal year.
For a prospective franchisee, understanding the franchisor's tax obligations can provide insights into the overall financial health and stability of the company. A significant income tax expense suggests that the company is profitable, which can be a positive indicator. However, it's also important to consider how tax strategies and liabilities might impact the franchisor's ability to support its franchisees.
It is important to note that this figure is just one component of Itan's overall financial performance. A franchisee should review the entire financial statement, including revenues, expenses, assets, and liabilities, to gain a comprehensive understanding of the company's financial position. Additionally, prospective franchisees should consult with a financial advisor to assess the tax implications for their own franchise operations.