What was the total income tax expense for Itan in 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued payroll | $ | 14,518 | $ 4,743 |
|---|---|---|---|
| Credit card payable | _ | 48,673 | 42,852 |
| $ | 63,191 | $ 47,595 | |
NOTE 8 CONTRACT LIABILITIES
The Company signed a ten-year, non-refundable Area Development Agreement (ADA) in December 2023. The ADA is for the opening of ten to twenty salons over ten years. This amount is to be recognized on a straight-line basis over the course of the te
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total income tax expense for the company in 2024 was $13,315. This figure represents the sum of current and deferred taxes, encompassing both federal and state income taxes. It is important to note that this is an expense, meaning it reduces Itan's net earnings.
Breaking down the income tax expense, the FDD reveals that Itan's current state income taxes were $6,013, while current federal income taxes were not listed, implying they may have been zero. Deferred federal income taxes amounted to $5,153, and deferred state income taxes were $2,149. These deferred taxes reflect temporary differences between the book and tax bases of assets and liabilities, which will result in taxable or deductible amounts in future years.
For a prospective Itan franchisee, understanding the company's tax obligations can provide insight into its financial health and profitability. While this figure represents Itan's expense, franchisees should consult with a financial advisor to understand their own potential tax liabilities and how these might differ from the franchisor's. Reviewing the notes to the financial statements, specifically note 9 as referenced in the table, may provide further details on the components of the income tax expense and the underlying assumptions used in its calculation.