What amount was due from Evolv to the Itan Company as of December 31, 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
o the Company. Total marketing fund fees from
Page 12
KHI for the years ended December 31, 2023 and 2022 were $96,154 and $119,879, respectively. KHI owes marketing fees and amounts for workers compensation insurance, supplies, and services to the Company of $6,706 and $8,028 for the years ended December 31, 2023 and 2022, respectively. These balances due from this related party are reflected in accounts receivable on the balance sheets. At December 31, 2023 and 2022, the Company had a $250,000 and $100,000 receivable, respectively, from KHI. This amount is a short term advance and is reflected in due from related parties on the balance sheets. The advance does not accrue interest.
Rent paid to Evolv for the years ended December 31, 2023 and 2022 was $35,933 and $35,112, respectively. During the years ended December
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, as of December 31, 2023, $230 was due from Evolv to Itan. This amount is reflected in 'due from related parties' on Itan's balance sheets. Evolv Brands, Inc. ("Evolv") is under common control of Itan's owner.
It is important to note that Evolv and Itan share common expenses. During the year, Evolv paid for certain expenses on behalf of Itan, while Itan also paid for expenses on behalf of Evolv. The $230 represents the net amount due to Itan after accounting for these shared expenses.
Prospective franchisees should be aware of these related-party transactions, as they can impact the financial performance of Itan. Understanding the nature and extent of these transactions is crucial for assessing the overall financial health and stability of the franchise system. Franchisees may want to inquire about the specific types of expenses shared between Itan and Evolv and the terms under which these expenses are allocated.