What should an Itan franchisee do to determine their net income or profit?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The earnings claims figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.
You should conduct an independent investigation of the costs and expenses you will incur in operating your franchise business.
Franchisees or former franchisees listed in the Disclosure Document may be one source of this information.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the earnings claim figures provided by Itan do not reflect the costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. This means that any revenue or sales figures presented in the FDD are gross amounts, and a franchisee must account for all associated expenses to understand their potential profitability.
To determine their net income or profit, a prospective Itan franchisee should conduct an independent investigation of the costs and expenses they will incur while operating the franchise. This investigation should include a detailed analysis of all potential expenses, such as rent, utilities, inventory, salaries, marketing costs, and franchise fees. Understanding these costs is crucial for assessing the financial viability of the franchise.
The FDD suggests that one source of information for this investigation is current or former Itan franchisees listed in the Disclosure Document. Speaking with existing franchisees can provide valuable insights into the actual costs and expenses involved in running an Itan franchise, helping prospective franchisees develop a more accurate financial forecast. Consulting with legal counsel is also recommended to fully understand the financial implications and legal obligations of the franchise agreement.