What was the highest cost of goods sold for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financial Performance Metric | Lowest | Highest | Median | Average | Average | Outlets at or above average | ||
|---|---|---|---|---|---|---|---|---|
| % of | Qty | % | ||||||
| Gross | ||||||||
| Sales | ||||||||
| Gross Sales | Memberships | $157,815 | $612,392 | $372,248 | $391,310 | 76% | 13 | 46% |
| Drafted | ||||||||
| Sessions & | $15,885 | $67,044 | $65,787 | $49,712 | 10% | 12 | 43% | |
| Upgrades | ||||||||
| Total Services | $173,700 | $679,436 | $438,034 | $441,022 | 86% | 13 | 46% | |
| Product | $33,281 | $89,832 | $59,439 | $71,905 | 14% | 11 | 39% | |
| (Retail) | ||||||||
| Total | $206,981 | $769,268 | $497,474 | $512,926 | 100% | 13 | 46% | |
| Products & | ||||||||
| Services | ||||||||
| Cost of Goods Sold | $19,984 | $40,263 | $34,740 | $29,596 | 6% | 12 | 43% | |
| Gross Profit | $ 186,997 | $729,005 | $462,734 | $483,330 | 94% | 13 | 46% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the highest cost of goods sold among the 28 qualifying salons was $40,263. This data is based on the performance of franchised salons during the measuring period from January 1, 2024, to December 31, 2024.
For a prospective Itan franchisee, understanding the cost of goods sold is crucial for financial planning. The cost of goods sold represents the direct costs attributable to the production of the goods sold in the salon. Knowing that the highest cost reached $40,263 provides an upper benchmark for potential expenses in this area. However, it's important to note that individual results may vary, and there is no guarantee that a new franchisee will experience the same costs.
Itan's FDD specifies that COGS includes the cost of merchandise and retail items purchased for resale. This means franchisees should carefully manage their inventory and purchasing strategies to optimize profitability. While the average cost of goods sold was $29,596, some salons experienced significantly higher costs, highlighting the importance of efficient inventory management and vendor negotiations.
Prospective franchisees should also consider the factors that could influence their cost of goods sold, such as location, product mix, and purchasing power. It is advisable to consult with existing franchisees and financial advisors to develop realistic projections for their own Itan salon.