What was the computed tax at the US Federal statutory rate of 21% for My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
income before taxes is as follows for the period ending December 31:
| Computed tax at the US Federal statutory rate of 21% | $ 8,258,285 |
|---|---|
| State taxes, net of US Federal benefit | 500,431 |
| Non-deductible items | 7,192 |
| FTC True-up | 66,412 |
| Other | 88,826 |
| Total Expense provision f |
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 computed tax at the U.S. Federal statutory rate of 21% was $8,258,285. This figure is part of the reconciliation of the provision for income taxes. It represents the tax amount calculated by applying the federal statutory rate to the company's income before taxes.
In addition to the computed federal tax, My Salon Suite also accounted for state taxes, net of the U.S. Federal benefit, amounting to $500,431. The company also had $7,192 in non-deductible items, a $66,412 adjustment for FTC True-up, and $88,826 in other expenses. These components, along with the computed federal tax, contribute to the total expense provision for income taxes, which amounted to $8,921,146.
The effective income tax rate for My Salon Suite was 22.68%. This rate reflects the actual percentage of income paid in taxes, considering all the adjustments and components mentioned above. Prospective franchisees should understand these figures as they provide insight into the tax obligations and financial performance of My Salon Suite.