Does Itan consolidate variable interest entities under common control?

According to Itan's 2025 Franchise Disclosure Document, Itan follows an alternative accounting standard for private companies regarding entities under common control. As a result, Itan does not evaluate entities under common control according to the variable interest subsections of the Financial Accounting Standards Board ("FASB") ASC 810.

For a prospective franchisee, this means that the financial statements of Itan may not fully reflect the financial positions of entities under common control with Itan. This could potentially obscure the true financial picture of the entire Itan organization, as the performance of these related entities is not consolidated into Itan's reported financials.

It is important for potential franchisees to understand the implications of this accounting practice. While it is permitted under specific accounting standards for private companies, it may limit transparency into the broader Itan network. A prospective franchisee may want to inquire further about the nature and performance of these entities under common control to gain a more comprehensive understanding of the financial health of the Itan franchise system.