What costs are NOT reflected in the earnings claims figures provided by Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The earnings claims figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.
You should conduct an independent investigation of the costs and expenses you will incur in operating your franchise business.
Franchisees or former franchisees listed in the Disclosure Document may be one source of this information.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the earnings claims figures do not reflect all the costs a franchisee will incur. Specifically, the figures exclude costs of sales, operating expenses, and other costs or expenses that must be deducted from gross revenue or gross sales to determine net income or profit. This means that the earnings claims provide a picture of potential revenue, but not a complete picture of profitability.
For a prospective Itan franchisee, this is a critical consideration. The document emphasizes the importance of conducting an independent investigation into all the costs and expenses associated with operating an Itan franchise. This investigation should include gathering information from existing or former franchisees listed in the Disclosure Document.
It is common practice in franchising for earnings claims to focus on revenue or gross sales figures. This allows franchisors to highlight the potential top-line performance of a franchise. However, it is equally important for prospective franchisees to understand the expenses they will incur, which can vary significantly based on location, management style, and other factors. Consulting with legal counsel is also recommended to fully understand the implications of the Franchise Agreement.