What should an Itan franchisee do to determine their net income or profit from earnings claims figures?
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 claims figures provided do not account for the costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. This means that the gross revenue or gross sales figures presented in the earnings claims are not indicative of what a franchisee can expect to take home as profit.
To determine potential net income or profit, Itan advises prospective franchisees to conduct an independent investigation of the costs and expenses they will incur while operating their franchise business. This investigation should include a detailed analysis of all potential expenses, such as rent, utilities, salaries, inventory, marketing costs, and other operating expenses.
The FDD suggests that one source of information for this investigation is current or former Itan franchisees listed in the Disclosure Document. Speaking with these individuals can provide valuable insights into the actual costs and expenses associated with running an Itan franchise. By gathering this information and deducting these costs from the gross revenue figures, a prospective franchisee can develop a more realistic estimate of their potential net income or profit.