How many Itan franchised outlets ceased operations for other reasons in 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Termin ations | Non Renewals | Reacquired by Franchisor | Ceased Operations - Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| 2022 | 23 | 3 | 0 | 0 | 0 | 0 | 26 | |
| Totals | 2023 | 26 | 0 | 0 | 0 | 0 | 2 | 24 |
| 2024 | 24 | 5 | 0 | 0 | 0 | 1 | 28 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 42–43)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, in 2024, one franchised outlet ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor. This information is crucial for potential franchisees as it offers insight into the stability and potential risks within the Itan franchise system. Understanding why outlets close, beyond the typical reasons, can help a franchisee assess the challenges they might face.
Franchises can cease operations for a variety of reasons, such as poor location performance, economic downturns, or specific local market issues. Knowing that one Itan franchise closed for 'other reasons' in 2024 prompts further investigation. A prospective franchisee should inquire with Itan about the specific reasons behind such closures to better evaluate their investment's risk profile.
It is also important to note that Item 20 of the FDD includes a list of franchisees who have left the system, and Exhibit F includes contact information for franchisees who have been terminated, canceled, or not renewed their agreements, or who have otherwise ceased to do business under the franchise agreement. This information can be valuable for prospective franchisees to gain insights into the experiences of current and former franchisees, although some may have signed confidentiality agreements.