Does the Franchise Disclosure Document for Itan include an exhibit containing the financial statements of iTAN Franchising, Inc.?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITOR'S REPORT
To the Stockholder iTan Franchising, Inc.
Opinion
We have audited the accompanying financial statements of iTan Franchising, Inc., which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of earnings, stockholder's equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of iTan Franchising, Inc. as of December 31, 2024 and 2023, and the results of its activities and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of iTan Franchising, Inc. and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about iTan Franchising, Inc.'s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
Yes, according to the 2025 FDD, Itan's franchise disclosure document includes an exhibit containing the financial statements of iTan Franchising, Inc. Specifically, the document includes an Independent Auditor's Report and audited financial statements. These statements comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of earnings, stockholder's equity, and cash flows for the years then ended, along with related notes.
The inclusion of these financial statements provides prospective Itan franchisees with insight into the franchisor's financial health and stability. The Independent Auditor's Report indicates that the financial statements present fairly the financial position of iTan Franchising, Inc. as of December 31, 2024 and 2023, in accordance with accounting principles generally accepted in the United States of America.
Furthermore, the notes to the financial statements offer additional details about iTan's accounting policies, cash management, and other relevant financial information. For example, the FDD notes that iTan Franchising, Inc. was incorporated on April 9, 2008, and began operations in 2009, and that the company is a franchisor of salons. The notes also describe the company's accounting policies, including the basis of accounting, use of estimates, and fair value measurements. The FDD also mentions that the company qualified for the Employee Retention Credit (ERC) in 2020 and 2021, totaling an accrued benefit of $31,452.
Prospective franchisees should carefully review these financial statements and notes, along with the Independent Auditor's Report, to assess the financial viability of Itan Franchising, Inc. and to make informed decisions about investing in an Itan franchise. Consulting with a financial advisor or accountant is recommended to fully understand the implications of the financial statements.