What was the total current federal income tax expense for Lees Famous Recipe in 2024?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
signed a market development agreement for 12 potential stores in 2021, which was subsequently amended in 2023 for 16 potential stores. During 2024, the Company signed a three-unit market development agreement. As of December 31, 2024 and 2023, not all of the pre-opening services had been performed.
NOTE 12 - INCOME TAXES
Income tax (benefit) expense consists of the following:
| 2024 | 2023 | 2022 |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe had a current federal income tax expense of $80,860 in 2024. This figure represents the company's estimated federal income tax obligations for that year. It's important to note that this is just the current portion of the federal income tax expense.
In addition to the current federal income tax expense, Lees Famous Recipe also reported a deferred federal income tax benefit of $121,000 in 2024. Deferred tax assets and liabilities arise from temporary differences between the book and tax bases of assets and liabilities. The deferred portion can fluctuate significantly year to year.
The total income tax (benefit) expense for Lees Famous Recipe in 2024 was $(25,671), which indicates a net income tax benefit rather than an expense. This figure takes into account both the current and deferred portions of federal and state income taxes. Prospective franchisees should be aware that income tax expenses can vary significantly from year to year depending on profitability and changes in tax laws.