What was the amount of federal current income taxes for Learningrx in 2023?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Income | ||
|---|---|---|
| Royalty fees | $ 1 ,192,359 | $ 1 ,192,063 |
| Initial franchise fees | 114,551 | 162,286 |
| Area development fees | 9,769 | 6,200 |
| Technology and training fees | 113,401 | 112,854 |
| Transfer fees | 24,500 | - |
| Renewal fees | 7,000 | 7,000 |
| Materials fees | 15,888 | 16,479 |
| Marketing fees | 73,535 | 17,418 |
| Interest and other income | 20,726 | 5,295 |
| Total Income | 1,571,729 | 1,519,595 |
| Expenses | ||
| Bad debt | 29,764 | - |
| Depreciation | 898 | 898 |
| Franchise system expenses | 615,225 | 564,949 |
| Marketing and development | 50,212 | 34,373 |
| Outside consultants | 104,033 | 105,341 |
| Overhead | 79,864 | 133,279 |
| Professional fees | 67,938 | 90,734 |
| Rent | 60,000 | 80,000 |
| Research and development | 24,000 | 39,138 |
| Sales expenses | 246,224 | 268,100 |
| Technology | 124,023 | 184,121 |
| Total Expenses | 1,402,181 | 1,500,933 |
| Net Income Before Income Taxes | 169,548 | 18,662 |
| Income Ta |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the federal current income taxes for 2023 were $3,961. This figure reflects the amount Learningrx paid in federal income taxes during that year. Franchisees should note that this is a corporate-level expense and not directly related to the taxes a franchisee would pay on their individual Learningrx center's profits. However, understanding the franchisor's financial health and tax obligations can provide insight into the overall stability of the franchise system.
It's important to consider this figure in the context of Learningrx's overall financial performance. While $3,961 represents the current federal income tax, Learningrx also deals with deferred taxes, which are tax benefits or liabilities that will be recognized in future years. Reviewing both current and deferred taxes can give a more complete picture of the company's tax strategy and obligations.
Prospective franchisees should also be aware that Learningrx's income taxes can fluctuate from year to year, as seen by the $42,057 paid in 2024. These changes can be due to various factors, including changes in profitability, tax laws, and the use of net operating loss carryforwards. Therefore, it is advisable to review several years of financial statements to understand the trends and potential volatility in Learningrx's tax obligations. Consulting with a financial advisor is recommended to fully understand the implications of these figures.