How many Itan franchised outlets ceased operations for reasons other than termination, non-renewal, or reacquisition in 2023?
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 2023, 2 franchised outlets ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor. This information is detailed in Item 20, which covers outlets and franchisee information.
This data point 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 like termination or non-renewal, can highlight underlying issues such as market saturation, operational challenges, or financial difficulties faced by franchisees.
Prospective franchisees should further investigate the reasons behind these closures to assess the overall health and sustainability of an Itan franchise. This includes speaking with current and former franchisees, as mentioned in the FDD, although some may have signed confidentiality agreements. Understanding the specific reasons for these closures can help a potential franchisee make a more informed decision about investing in an Itan franchise.