What was the Itan income before taxes in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 60,182 | 15,473 | | Contract liabilities (note 8) | 115,000 | - | | Deferred tax liability (note 9) | 39,617 | 45,047 | | Note payable - current portion (note 10) | 15,038 | - | | | 281,197 | 92,711 | | LONG TERM LANGUETES | | | | LONG TERM LIABILITIES | FC 074 | | | Note payable (note 10) | 56,974 | | | TOTAL LIABILITIES | 338,171 | 92,711 | | STOCKHOLDER'S EQUITY | | | | Common stock (note 11) | 50,000 | 50,000 | | Additional paid in capital | 38,000 | 38,000 | | Accumulated earnings | 1,704,663 | 1,432,517 | | | 1,792,663 | 1,520,517 | | TOTAL MARKITISS AND STOCKHOLDS PICTORY | | 4 640 065 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 2,130,834 | $ 1,613,228 |
| 2023 | 2022 | |||
|---|---|---|---|---|
| SALES | _ | 1 | ||
| Royalties | $ | 746,395 | $ | 685,019 |
| Membership and technology service fees | 22,788 | 24,761 | ||
| Salon transfer fees | ~ | 24,000 | ||
| Franchise renewal fee | 769,183 | 12 | 4,000 737,780 | |
| OPERATING EXPENSES | ||||
| Auto | 8,000 | 8,286 | ||
| Depreciation | 443 | 1,543 | ||
| Dues and subscriptions | 6,945 | 3,493 | ||
| Franchise marketing | = | 54 | ||
| Insurance | 85,562 | 75,633 | ||
| Office | 14,371 | 7,906 | ||
| Outside services | 51,677 | 14,419 | ||
| Payroll costs | 207,031 | 238,355 | ||
| Professional fees | 25,584 | 27,707 | ||
| Lease | 35,933 | 35,112 | ||
| Taxes and licenses | 325 | 325 | ||
| Travel and meetings | 9,249 | 8,677 | ||
| Utilities | 14,555 451,675 | ë- | 13,210 426,434 | |
| OPERATING INCOME | 317,508 | 311,346 | ||
| OTHER INCOME/(EXPENSES) | ||||
| Marketing fund fees | 635,751 | 591,317 | ||
| Other income (note 12) | 12 | 105,969 | ||
| Interes |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the income before taxes in 2023 was $371,835. This figure represents the company's earnings before any income tax expenses were deducted. It is an important metric for potential franchisees to understand the overall profitability of Itan before considering the impact of taxes.
Income before taxes is calculated by subtracting total operating expenses from total revenues, and then adjusting for other income and expenses, such as interest income or expense. For Itan, the major components contributing to this income include royalties, membership and technology service fees, and area development agreement fees, offset by operating expenses like auto, credit loss, depreciation, insurance, office, outside services, payroll costs, professional fees, lease, taxes and licenses, training, travel and meetings, and utilities. Additionally, marketing fund fees and expenses, along with interest income and expenses, play a role in determining the final income before taxes.
Prospective franchisees should carefully review the components of income before taxes to understand the factors that drive Itan's profitability. Understanding these factors can help franchisees assess the potential financial performance of their own Itan franchise and make informed decisions about their investment. It is also important to compare these figures with previous years and industry benchmarks to evaluate the company's financial trends and competitive position.