How many Itan franchise locations were closed during the year 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
| 2024 | 2023 | |
|---|---|---|
| Franchise locations, beginning of year | 29 | 31 |
| Opened franchise locations | ( | - |
| Closed franchise locations | 1 | 2 |
| Franchise locations, end of year | 28 | 29 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, there were 2 franchise locations closed during the year 2023. At the beginning of 2023, Itan had 31 franchise locations. After opening no new locations and closing 2, Itan ended the year with 29 franchise locations.
Franchise closures can be due to a variety of factors, including poor performance, disputes between the franchisee and franchisor, or the franchisee's decision to retire or pursue other opportunities. High closure rates can be a red flag for prospective franchisees, indicating potential problems with the franchise system. Conversely, low closure rates can be a positive sign, suggesting that franchisees are generally successful and satisfied with the Itan brand.
It is important for prospective franchisees to carefully review the closure rates disclosed in Item 23 of the FDD over multiple years to identify any trends. They should also inquire about the reasons for any closures and assess whether those reasons are likely to impact their own potential success with Itan. Understanding the dynamics of franchise closures is a crucial part of due diligence before investing in any franchise opportunity.