What entities are under common control of the Itan Company's owner?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Consolidation of variable interest entities - The Company follows the alternative accounting standard for private companies with respect to entities under common control. As such, entities under common control have not been evaluated under the guidance in the variable interest subsections of the Financial Accounting Standards Board ("FASB") ASC 810.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company follows an alternative accounting standard for private companies regarding entities under common control. This means that Itan has not evaluated these entities under the variable interest subsections of the Financial Accounting Standards Board (FASB) ASC 810.
For a potential franchisee, this indicates that the financial statements of Itan Franchising, Inc. might not fully consolidate or reflect the financial performance and position of entities under common control of Itan's owner. This could be relevant if these entities have a significant impact on Itan's operations or financial stability.
It is important for prospective franchisees to understand the nature of these entities under common control and their relationship with Itan. Specifically, a potential franchisee should ask Itan for more information about these related entities to assess any potential risks or benefits they may present to the franchise system.