What were the Itan insurance expenses 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 company's insurance expenses for 2024 were $72,234. This figure represents the cost Itan incurred for insurance coverage during that year.
For a prospective franchisee, understanding this expense is crucial for financial planning. Insurance costs can vary based on location, coverage types, and risk factors. Knowing the franchisor's expenses can provide a benchmark, but franchisees should obtain their own insurance quotes to accurately assess their potential costs.
It's also worth noting that insurance expenses are just one component of the overall operating expenses. Reviewing other expense categories, such as auto, office, and payroll costs, will provide a more comprehensive view of the financial obligations involved in running an Itan franchise.