What was the Itan franchise renewal fee in 2022?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| ACCETC | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 349,230 | $ 18,409 |
| Accounts receivable | 96,871 | 101,411 |
| Due from related parties (note 5) | 1,550,230 | 1,399,221 |
| Prepaid expenses | 9,196 | 83,782 |
| Prepaid taxes | 5,150 | 5,087 |
| Deferred tax asset (note 9) | 37,027 | 4,661 |
| belefied tax asset (note 5) | 37,027 | 1,001 |
| 2,042,554 | 1,612,571 | |
| PROPERTY AND EQUIPMENT (note 3) | 88,280 | 657 |
| TOTAL ASSETS | 2,130,834 | 1,613,228 |
| 101/12/105215 | 2,130,031 | |
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | 3,765 | 792 |
| Accrued liabilities (note 7) | 47,595 | 31,399 |
| Accrued taxes | 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 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchise renewal fee in 2022 was $4,000. This fee is part of the revenues generated by Itan through its franchising operations. Franchisees typically pay this fee to renew their franchise agreement and continue operating under the Itan brand.
The document also lists other fees and revenue sources for Itan, such as royalties, membership and technology service fees, and salon transfer fees. Royalties amounted to $685,019 in 2022, while membership and technology service fees totaled $24,761. Salon transfer fees generated $24,000. These figures provide insight into the various income streams that contribute to Itan's financial performance.
Prospective franchisees should consider the franchise renewal fee as part of their long-term financial planning. Understanding the timing and amount of this fee is crucial for budgeting and ensuring continued operation of the franchise. Additionally, franchisees should be aware of other fees, such as royalties and marketing contributions, which can impact their overall profitability. Reviewing the complete financial statements and revenue breakdown can offer a comprehensive view of the financial obligations and potential earnings associated with an Itan franchise.