What were the Itan dues and subscriptions expenses in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 60,182 | 15,473 | | Contract liabilities (note 8) | 115,000 | - | | Deferred tax liability (note 9) | 39,617 | 45,047 | | Note payable - current portion (note 10) | 15,038 | - | | | 281,197 | 92,711 | | LONG TERM LANGUETES | | | | LONG TERM LIABILITIES | FC 074 | | | Note payable (note 10) | 56,974 | | | TOTAL LIABILITIES | 338,171 | 92,711 | | STOCKHOLDER'S EQUITY | | | | Common stock (note 11) | 50,000 | 50,000 | | Additional paid in capital | 38,000 | 38,000 | | Accumulated earnings | 1,704,663 | 1,432,517 | | | 1,792,663 | 1,520,517 | | TOTAL MARKITISS AND STOCKHOLDS PICTORY | | 4 640 065 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 2,130,834 | $ 1,613,228 |
| 2023 | 2022 | |||
|---|---|---|---|---|
| SALES | _ | 1 | ||
| Royalties | $ | 746,395 | $ | 685,019 |
| Membership and technology service fees | 22,788 | 24,761 | ||
| Salon transfer fees | ~ | 24,000 | ||
| Franchise renewal fee | 769,183 | 12 | 4,000 737,780 | |
| OPERATING EXPENSES | ||||
| Auto | 8,000 | 8,286 | ||
| Depreciation | 443 | 1,543 | ||
| Dues and subscriptions | 6,945 | 3,493 | ||
| Franchise marketing | = | 54 | ||
| Insurance | 85,562 | 75,633 | ||
| Office | 14,371 | 7,906 | ||
| Outside services | 51,677 | 14,419 | ||
| Payroll costs | 207,031 | 238,355 | ||
| Professional fees | 25,584 | 27,707 | ||
| Lease | 35,933 | 35,112 | ||
| Taxes and licenses | 325 | 325 | ||
| Travel and meetings | 9,249 | 8,677 | ||
| Utilities | 14,555 451,675 | ë- | 13,210 426,434 | |
| OPERATING INCOME | 317,508 | 311,346 | ||
| OTHER INCOME/ |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company's dues and subscriptions expenses in 2023 were $6,945. This figure reflects the costs Itan Franchising, Inc. incurred for memberships and subscriptions necessary for operating the franchise system during that year.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the franchisor's operational costs. While franchisees do not directly pay for these corporate-level expenses, they indirectly contribute through royalties and other fees. Monitoring these expenses can help franchisees gauge the financial health and management efficiency of Itan.
The dues and subscriptions expense is part of the overall operating expenses, which totaled $451,675 in 2023. This broader context helps in assessing the relative significance of dues and subscriptions within Itan's financial structure. Reviewing these figures over multiple years, as presented in the FDD, can reveal trends and potential areas of concern or improvement for the franchise system.