How many Itan outlets had cost of goods sold at or above the average?
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% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, 12 out of 28 qualifying salons had a cost of goods sold (COGS) at or above the average. The average COGS was $29,596, representing 6% of gross sales. This data is based on the performance of franchised salons during the measuring period from January 1, 2024, to December 31, 2024.
For a prospective franchisee, this information is valuable in understanding the range of COGS within the Itan franchise system. Knowing that 43% of salons exceeded the average COGS can help in financial planning and risk assessment. It's important to note that COGS, as defined in the FDD, includes the cost of merchandise and retail items purchased for resale.
It's also crucial to consider that individual results may vary, and there is no guarantee that a new franchisee will achieve similar financial performance. The FDD encourages prospective franchisees to consult with their advisors to develop their own revenue estimates. Additionally, the FDD provides written substantiation for the financial performance representation upon reasonable written request.
Understanding the factors that contribute to higher or lower COGS can be beneficial. Factors such as inventory management, purchasing strategies, and product mix can influence these costs. A prospective franchisee should discuss these factors with existing franchisees and the franchisor to gain a better understanding of how to manage COGS effectively.