How is a 'Customer' defined for the purposes of Itan's financial performance representation?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
by providing information about possible performance at a particular location or under particular circumstances.
Defined Terms
For purposes of this financial performance representation, the following terms have the meanings given to them below:
"COGS" means the cost of merchandise and retail items purchased for resale.
"Company-Owned Salon" means any Salon that is owned by: (a) us;
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a 'Customer' is defined specifically for the purposes of the financial performance representation (FPR). The FDD states that a 'Customer' is an individual who purchased any goods or services, including a monthly membership, at any time during the 'Measuring Year'. The 'Measuring Period' is defined as the period between January 1, 2024, and December 31, 2024.
It's important to note that Itan counts a customer who makes purchases at multiple salon locations as a customer of each of those salons. This means that if one person visits three different Itan locations and makes a purchase at each during the 'Measuring Period', they will be counted as three separate customers in Itan's financial performance calculations.
This definition is important for prospective franchisees to understand because the number of customers directly impacts the gross sales and overall financial performance of an Itan franchise. When reviewing the financial performance representation, a franchisee should keep in mind that the customer count may include repeat customers across multiple locations, which could potentially inflate the perceived customer base of an individual salon.