What was the amount of deferred income taxes for My Salon Suite in 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
inancial statements.
9. Income Taxes
The expense (benefit) for income taxes consists of the following for the years ended December 31:
| 2023 | 2022 | |
|---|---|---|
| Current Federal State Foreign | $ 7,383,607 1,182,311 194,807 | $ 4,819,044 410,927 221,329 |
| Total | 8,760,725 | 5,451,300 |
| current | ||
| Deferred: Federal State | 147,498 34,769 |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the total deferred income tax expense for 2023 was $182,267. This figure is broken down into federal deferred income taxes of $147,498 and state deferred income taxes of $34,769.
Deferred income taxes arise from temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. These differences result in taxable or deductible amounts in future years when the assets are recovered or the liabilities are settled. For My Salon Suite, these deferred taxes reflect the future tax consequences of past events.
For a prospective franchisee, understanding deferred income taxes may not be crucial for day-to-day operations, but it's important for assessing the overall financial health and stability of My Salon Suite. Franchisees should focus on how these figures relate to the company's profitability and long-term tax strategies. Consulting with a financial advisor can provide further clarity on the implications of these deferred tax amounts.