How many Itan franchise locations were owned by a related party during 2023?

According to Itan's 2025 Franchise Disclosure Document, there were five franchise locations owned by a related party during 2023. This number decreased to zero in 2024. This information is relevant to potential franchisees as it provides insight into the relationship between Itan and its related parties, as well as the extent of related-party involvement in franchise ownership.

It is important to note that franchise agreements for related parties may differ from standard franchise agreements. For example, the FDD states that franchises belonging to a related party may have different royalty fee arrangements. Understanding the number of related-party franchises and the terms of their agreements can help a prospective franchisee assess the fairness and competitiveness of the standard franchise offering.

Additionally, the FDD mentions that KHI, a related party, owned five franchise locations as of December 31, 2023, but sold them to a third party by the end of that year. During the time that KHI owned the locations, they paid no royalty fees to Itan. Total marketing fund fees from KHI for the year ended December 31, 2023, were $96,154. This further illustrates the financial interactions between Itan and its related parties, which can be a key consideration for potential franchisees.