What was the Itan franchise renewal fee in 2023?
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 2023 was $769,183. This figure is part of the sales revenues reported by Itan for that year. It is important to note that this number may reflect the aggregate of all franchise renewal fees collected across the Itan system, rather than the renewal fee for a single franchise location.
Prospective franchisees should understand that franchise renewal fees contribute significantly to Itan's revenue. The FDD also lists the franchise renewal fee as $1,000 due at renewal. The discrepancy between the aggregate renewal fees and the fee due at renewal could be due to a number of factors, including multiple franchise renewals occurring in 2023, or other fees being included in the aggregate number.
It is important for potential franchisees to clarify with Itan the specific renewal fee structure and what factors might influence the total amount due at the time of renewal. Understanding the components of this fee and how it is applied is crucial for financial planning and assessing the long-term profitability of an Itan franchise.