In what format must Itan franchisees submit their financial statements?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 90 days after the end of each calendar year, you must prepare and send us a balance sheet (as of the end of the calendar year) and profit and loss statement for the prior calendar year.
Financial statements must be: (a) verified and signed by you certifying to us that the information is true, complete, and accurate; (b) prepared on an accrual basis in compliance with Generally Accepted Accounting Principles; and (c) submitted in any format we reasonably require.
We may require that your financial statements be reviewed or audited by a certified public accountant if you submit materially inaccurate financial statements on a prior occasion.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must submit a balance sheet and profit and loss statement to Itan within 90 days after the end of each calendar year. These financial statements must adhere to specific requirements to be considered acceptable by Itan.
First, the franchisee must verify and sign the financial statements, certifying that the information provided is true, complete, and accurate. This emphasizes the franchisee's responsibility for the integrity of the financial data. Second, the financial statements must be prepared on an accrual basis, following Generally Accepted Accounting Principles (GAAP). This ensures that the financial reporting is consistent and comparable across all Itan franchise locations, aligning with standard accounting practices.
Finally, the financial statements must be submitted in any format that Itan reasonably requires. This gives Itan the flexibility to specify the submission format, which could be electronic or paper-based, and allows them to adapt the format as needed. Itan also retains the right to request that a certified public accountant review or audit a franchisee's financial statements if materially inaccurate statements were submitted previously. This condition serves as a safeguard for Itan, ensuring the accuracy and reliability of financial data submitted by franchisees, and protecting the integrity of the Itan franchise system.