What was the net deferred tax liabilities for Moes Southwest Grill as of December 31, 2023?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the net deferred tax liabilities as of December 31, 2023, were $(74,271). This figure represents the overall tax liabilities that Moe's Southwest Grill has deferred to future periods, reflecting the difference between deferred tax liabilities and deferred tax assets. Deferred tax liabilities arise from temporary differences between the book value of assets and liabilities and their tax bases. These differences will result in taxable amounts in the future when the assets are recovered or the liabilities are settled.

The deferred tax liabilities consist of several components, including intangible assets [$(129,175)], operating lease assets [$(16,995)], prepaid costs and expenses [$(2,182)], depreciable assets and research and development costs [$(1,970)], and other [$(125)]. Deferred tax assets include net operating loss and tax credit carryforwards ($23,015), operating lease liabilities ($18,512), reserves and allowances ($257), accrued expenses ($8,101), interest limitation carryforward ($10,449), interest expense and other ($738). These assets reduce the overall net deferred tax liability.

For a prospective franchisee, understanding these deferred tax implications is crucial. While deferred tax liabilities are not immediate cash obligations, they represent future tax obligations that Moe's Southwest Grill will need to address. Monitoring these liabilities and how they might impact the company's financial performance can provide insights into the financial health and stability of the franchisor. Franchisees should consider discussing these figures with a financial advisor to fully understand their implications.