Did Itan have any allowances for credit losses at December 31, 2024 and 2023?

According to Itan's 2025 Franchise Disclosure Document, at December 31, 2024 and 2023, the company had no allowances for credit losses. This indicates that Itan did not anticipate any losses from receivables during these periods.

Itan follows standards applicable to accounting for credit losses, which involves using the current expected credit loss (CECL) methodology. This methodology is applied to various types of receivables, including trading receivables, financing receivables, and held-to-maturity debt securities. It also extends to off-balance sheet credit exposures like loan commitments and financial guarantees.

For a prospective franchisee, this suggests that Itan has a history of not experiencing credit losses from its receivables. This could be due to effective management of accounts receivable or the financial stability of its franchisees. However, it is important to note that this is based on past performance and does not guarantee future results. A potential franchisee should still assess the creditworthiness of their own customers and implement appropriate credit risk management practices.