What was the amount of accumulated depreciation deducted from Itan's assets in 2024?

According to Itan's 2025 Franchise Disclosure Document, the accumulated depreciation deducted from the company's assets in 2024 was $56,128. This figure is part of the calculation of Itan's total property and equipment value. The assets include computers and equipment, furniture, and vehicles.

Accumulated depreciation represents the total amount of depreciation expense that has been recognized for these assets over their useful lives. Depreciation is an accounting method used to allocate the cost of an asset over its useful life, reflecting the gradual decline in its value due to wear and tear, obsolescence, or other factors. By deducting accumulated depreciation from the original cost of the assets, Itan arrives at the net book value of its property and equipment.

For a prospective Itan franchisee, understanding accumulated depreciation is important for assessing the net value of the franchisor's assets. It provides insight into the age and condition of the assets, which can be an indicator of future capital expenditure needs. A high accumulated depreciation relative to the original cost might suggest that the assets are nearing the end of their useful lives and may require replacement soon. This could have implications for the franchisor's financial stability and its ability to support franchisees.

It is also worth noting that the accumulated depreciation for 2023 was $38,201. The increase in accumulated depreciation from 2023 to 2024 indicates that Itan recognized additional depreciation expense during the year, reflecting the ongoing use and aging of its assets. This is a normal part of business operations, but franchisees should monitor these figures to understand the franchisor's asset management practices and potential future capital needs.