What was the Itan income tax expense in 2024?
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 company's income tax expense for the year 2024 was $13,315. This figure represents the total amount of income taxes, including federal and state current and deferred taxes, that Itan incurred during that year. This expense is a deduction from the company's income before taxes, ultimately affecting its net earnings.
For a prospective franchisee, understanding the franchisor's income tax expense can provide insights into the company's profitability and financial management. It's important to note that this figure reflects Itan's corporate tax obligations and does not directly represent the tax liabilities a franchisee would face, as franchisees are typically responsible for their own business and personal income taxes.
It is important to note that the income tax expense can fluctuate from year to year due to various factors, such as changes in income, tax laws, and accounting methods. For example, Itan's income tax expense in 2023 was significantly higher at $99,689 compared to $13,315 in 2024. Reviewing these trends over multiple years can offer a more comprehensive understanding of the company's tax situation. Franchisees should consult with a financial advisor to understand the tax implications of owning and operating an Itan franchise.