What was the total deferred income tax expense (benefit) for Lees Famous Recipe in 2022?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
d to perform pre-opening services before restaurant operations commence. This obligation is satisfied when the services are rendered. The Company signed a market development agreement for 12 potential stores in 2021, which was subsequently amended in 2023 for 16 potential stores. As of December 31, 2023 and 2022, not all of the pre-o
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the total deferred income tax benefit for 2022 was $88,000. This figure represents the sum of federal deferred income tax of $88,000 and no state deferred income tax.
Deferred income taxes arise from temporary differences between the book value of assets and liabilities reported for financial reporting and their tax bases. These differences result in future taxable or deductible amounts. A deferred tax asset represents a future tax benefit, while a deferred tax liability represents a future tax obligation.
For a prospective Lees Famous Recipe franchisee, understanding deferred income taxes is crucial for assessing the company's financial health and potential tax implications. While deferred tax assets can be a source of future tax relief, deferred tax liabilities may represent future tax burdens. Reviewing these figures over several years provides insight into the company's tax planning strategies and financial performance.