What was the Itan income tax expense in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued payroll | $ | 14,518 | $ 4,743 |
|---|---|---|---|
| Credit card payable | _ | 48,673 | 42,852 |
| $ | 63,191 | $ 47,595 | |
NOTE 8 CONTRACT LIABILITIES
The Company signed a ten-year, non-refundable Area Development Agreement (ADA) in December 2023. The ADA is for the opening of ten to twenty salons over ten years. This amount is to be recognized on a straight-line basis over the course of the te
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the income tax expense for the year 2023 was $99,689. This figure represents the total amount of income taxes, including federal and state, both current and deferred, that Itan incurred during that fiscal year.
For a prospective franchisee, understanding the franchisor's income tax expense can provide insights into the overall profitability and financial health of the company. A significant tax expense suggests that the company is generating substantial profits, which could be a positive indicator. However, it's also important to consider the company's strategies for tax planning and compliance, as these can impact future profitability.
It is worth noting that this figure is an expense, meaning it reduces the company's net earnings. In 2023, Itan's net earnings were $272,146 after deducting the income tax expense. Reviewing these figures in conjunction with other financial statement items, such as revenues and operating expenses, can offer a more comprehensive view of Itan's financial performance.