What was the average cost of goods sold for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financial Performance Metric | Lowest | Highest | Median | Average | Average | Outlets at or above average | ||
|---|---|---|---|---|---|---|---|---|
| % of | Qty | % | ||||||
| Gross | ||||||||
| Sales | ||||||||
| Gross Sales | Memberships | $157,815 | $612,392 | $372,248 | $391,310 | 76% | 13 | 46% |
| Drafted | ||||||||
| Sessions & | $15,885 | $67,044 | $65,787 | $49,712 | 10% | 12 | 43% | |
| Upgrades | ||||||||
| Total Services | $173,700 | $679,436 | $438,034 | $441,022 | 86% | 13 | 46% | |
| Product | $33,281 | $89,832 | $59,439 | $71,905 | 14% | 11 | 39% | |
| (Retail) | ||||||||
| Total | $206,981 | $769,268 | $497,474 | $512,926 | 100% | 13 | 46% | |
| Products & | ||||||||
| Services | ||||||||
| Cost of Goods Sold | $19,984 | $40,263 | $34,740 | $29,596 | 6% | 12 | 43% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the average cost of goods sold for a franchised salon was $29,596. This figure is based on data from 28 qualifying salons that were open and operating throughout the entire measuring period from January 1, 2024, to December 31, 2024, and provided all requested data. The cost of goods sold represents 6% of gross sales.
For a prospective Itan franchisee, this means that, on average, approximately $29,596 was spent on merchandise and retail items purchased for resale during the specified period. However, it's important to note that the lowest cost of goods sold was $19,984, while the highest was $40,263, indicating a range of performance among the franchised salons. Twelve out of the 28 salons (43%) were at or above the average cost of goods sold.
It is important to consider that the cost of goods sold is only one component of the overall expenses for an Itan franchise. The FDD also includes information on selected operating expenses such as labor, rent, and marketing, but franchisees will incur additional expenses such as insurance, session consumables, and utilities. Prospective franchisees should develop their own estimates of revenue and expenses in consultation with their advisors to determine the potential profitability of an Itan franchise.