What was the total deferred income tax expense for My Salon Suite in 2024?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
me taxes consists of the following for the years ended December 31:
| 2024 | 2023 | |
|---|---|---|
| Current: Federal State Foreign | $ 8,518,832 970,215 228,704 | $ 7,383,607 1,182,311 194,807 |
| Total current | 9,717,751 | 8,760,725 |
| Deferred: Federal State | (644,155 ) (152,450 ) | 147,498 34,769 |
| Total deferred | (796,605 ) |
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 2024 was $(796,605). This figure represents the net effect of deferred tax assets and liabilities, reflecting the future tax consequences of temporary differences between the book value of assets and liabilities and their tax bases. These deferred taxes arise primarily from differences in the timing of recognition of revenue and expenses for financial reporting and tax purposes. A negative value indicates that deferred tax liabilities exceeded deferred tax assets.
For a prospective My Salon Suite franchisee, understanding deferred income tax is crucial because it impacts the overall financial health and profitability of the franchise. While franchisees do not directly pay the corporation's income taxes, these figures reflect the financial strategies and tax planning effectiveness of the franchisor, which can influence the long-term stability and support provided to franchisees. Strong tax management at the franchisor level can free up resources for franchisee support, marketing, and innovation.
It is important to note that deferred tax expenses can fluctuate significantly from year to year due to changes in tax laws, accounting methods, or business operations. Franchisees should consider these figures as part of a broader due diligence process, evaluating the franchisor's financial statements and seeking professional advice to understand the potential implications for their investment. Monitoring these trends over several years can provide a more comprehensive view of the franchisor's financial management and sustainability.