If I want to review Itan's financial performance, where should I look in the FDD?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
INDEPENDENT AUDITOR'S REPORT
To the Stockholder iTan Franchising, Inc.
Opinion
We have audited the accompanying financial statements of iTan Franchising, Inc., which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of earnings, stockholder's equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of iTan Franchising, Inc. as of December 31, 2024 and 2023, and the results of its activities and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of iTan Franchising, Inc. and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about iTan Franchising, Inc.'s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Item 23 contains the company's receipts and includes the independent auditor's report. This report includes financial statements such as balance sheets, statements of earnings, stockholder's equity, and cash flows for specific years. For instance, one report covers the years ending December 31, 2024, and 2023, while another covers the years ending December 31, 2023, and 2022.
The auditor's report provides an opinion on whether Itan's financial statements present fairly the company's financial position, results of activities, and cash flows in accordance with generally accepted accounting principles in the United States of America. The report also outlines the responsibilities of both the management and the auditor in preparing and auditing these financial statements.
Specifically, management is responsible for preparing the financial statements and maintaining internal controls, while the auditor's responsibility is to provide reasonable assurance that the financial statements are free from material misstatement. The auditor's report also confirms that they have remained independent of Itan Franchising, Inc. and have met all ethical requirements for the audit. Reviewing these audited financial statements and the accompanying notes is essential for prospective franchisees to assess Itan's financial health and stability.