What was the depreciation expense for Itan for the year ended December 31, 2022?

According to Itan's 2025 Franchise Disclosure Document, the depreciation expense for the year ending December 31, 2022, was $1,543. Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. For Itan, this expense reflects the reduction in value of its assets, such as equipment or vehicles, over time.

For a prospective Itan franchisee, understanding depreciation expense is important for assessing the overall financial health and profitability of the franchise. While depreciation itself is a non-cash expense, it impacts the company's net income and taxable income. Higher depreciation expenses can reduce taxable income, potentially lowering tax liabilities.

Franchisees should consider how depreciation expenses might affect their own financial statements and tax obligations. It is advisable to consult with a financial advisor or accountant to fully understand the implications of depreciation and other accounting practices on their investment in an Itan franchise. Reviewing the complete financial statements and notes in Item 23 of the FDD will provide a more comprehensive view of Itan's financial performance.