What was the lowest cost of goods sold for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financial Performance Metric | Lowest | Highest | Median | Average | Average | Outlets at or above average | ||
|---|---|---|---|---|---|---|---|---|
| % of | Qty | % | ||||||
| Gross | ||||||||
| Sales | ||||||||
| Gross Sales | Memberships | $157,815 | $612,392 | $372,248 | $391,310 | 76% | 13 | 46% |
| Drafted | ||||||||
| Sessions & | $15,885 | $67,044 | $65,787 | $49,712 | 10% | 12 | 43% | |
| Upgrades | ||||||||
| Total Services | $173,700 | $679,436 | $438,034 | $441,022 | 86% | 13 | 46% | |
| Product | $33,281 | $89,832 | $59,439 | $71,905 | 14% | 11 | 39% | |
| (Retail) | ||||||||
| Total | $206,981 | $769,268 | $497,474 | $512,926 | 100% | 13 | 46% | |
| Products & | ||||||||
| Services | ||||||||
| Cost of Goods Sold | $19,984 | $40,263 | $34,740 | $29,596 | 6% | 12 | 43% | |
| Gross Profit | $ 186,997 | $729,005 | $462,734 | $483,330 | 94% | 13 | 46% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the lowest cost of goods sold among the 28 qualifying franchised salons was $19,984 during the measuring period from January 1, 2024, to December 31, 2024. This figure represents the lowest annual cost of merchandise and retail items purchased for resale by a franchisee. The average cost of goods sold was $29,596, with the median being $34,740. The cost of goods sold represented 6% of gross sales.
For a prospective Itan franchisee, understanding the cost of goods sold is crucial for financial planning. The financial performance representation indicates that some franchisees have achieved a lower cost of goods sold than others, which may be attributed to factors such as efficient inventory management, favorable supplier agreements, or differences in product mix. It's important to note that the Item 19 data is based on reports submitted by franchisees and data from the point-of-sale system.
It is important to remember that the FDD states, "Some Salons have earned this amount. Your individual results may differ. There is no assurance that you will earn as much." Prospective franchisees should conduct their own due diligence, including consulting with financial advisors, to develop realistic revenue and expense projections for their specific location and circumstances. The FDD also notes that franchisees will incur additional expenses beyond those included in the financial performance representation, such as insurance, session consumables, and utilities.