What was the Itan income before taxes in 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
le | 16,029 | 3,765 | | Accrued liabilities (note 7) | 63,191 | 47,595 | | Accrued taxes | 訓 | 60,182 | | Contract liabilities (note 8) | 103,500 | 115,000 | | Deferred tax liability (note 9) | 49,948 | 39,617 | | Note payable - current portion (note 10) | 17,413 | 15,038 | | | 250,081 | 281,197 | | LONG TERM LIABILITIES | | | | Note payable (note 10) | 39,561 | 56,974 | | TOTAL LIABILITIES | 289,642 | 338,171 | | STOCKHOLDER'S EQUITY | | | | Common stock (note 11) | 50,000 | 50,000 | | Additional paid in capital | 38,000 | 38,000 | | Accumulated earnings | 1,724,052 | 1,704,663 | | | 1,812,052 | 1,792,663 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 2,101,694 | $ 2,130,834 |
| 2024 | · | 2023 | ||
|---|---|---|---|---|
| SALES | ||||
| Royalties | $ | 863,175 | $ | 746,395 |
| Membership and technology service fees | 32,676 | 22,788 | ||
| Franchise renewal fee | 1,000 | = | ||
| Area development agreement fees (note 8) | _ | 11,500 908,351 | 769,183 | |
| OPERATING EXPENSES | ||||
| Auto | 14,241 | 8,000 | ||
| Credit loss | 284 | = | ||
| Depreciation | 17,927 | 443 | ||
| Dues and subscriptions | 8,507 | 6,945 | ||
| Insurance | 72,234 | 85,562 | ||
| Office | 98,068 | 14,371 | ||
| Outside services | 83,583 | 51,677 | ||
| Payroll costs | 392,761 |
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 2024 was $32,704. This figure represents the company's earnings before any income tax expenses were deducted. In comparison, the income before taxes in 2023 was significantly higher at $371,835.
For a prospective Itan franchisee, understanding the income before taxes is crucial as it provides a clear picture of the company's profitability before tax implications. This metric, when compared year-over-year, can highlight trends in the company's financial performance. The substantial decrease in income before taxes from 2023 to 2024 could signal potential challenges or changes in the business model that a franchisee should investigate further.
It is important to note that this income before taxes figure does not reflect the actual cash flow of the company. Factors such as depreciation, amortization, and other non-cash expenses can influence this number. Additionally, the income tax expense for 2024 was ($13,315), which resulted in a net earnings of $19,389. Franchisees should consider these factors and conduct a thorough financial analysis to assess the overall financial health and stability of Itan.