What is the 'Measuring Period' used by Itan for the financial performance representation data?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Sales" means the total revenue generated from all goods and services sold by the Salon less taxes and customer refunds.
- "Measuring Period" means the period of time commencing January 1, 2024, and expiring December 31, 2024.
- "Qualifying Salon" means any Franchised Salon that satisfies each of the following criteria: (a) the outlet was open and operating throughout the entire Measuring Period; and (b) the outlet provided us with all data we requested in order to prepare the FPR.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the "Measuring Period" for the financial performance representation (FPR) data is defined as the period from January 1, 2024, to December 31, 2024. This means that the financial data presented in Item 19 of the FDD, such as gross sales, cost of goods sold, and selected operating expenses, is based on the performance of qualifying Itan franchised salons during this specific 12-month timeframe.
Itan specifies that a "Qualifying Salon" must have been open and operating throughout the entire measuring period and provided all requested data to the franchisor to be included in the FPR. As of December 31, 2024, there were 28 franchised salons in operation, all of which met the criteria to be considered Qualifying Salons. This ensures that the financial data presented is based on a consistent and representative sample of Itan franchises.
Prospective franchisees should understand that the financial performance data presented is specific to this measuring period and may not be indicative of future performance. Factors such as changes in market conditions, competition, and the franchisee's own management skills can all impact financial results. It is important to carefully review the assumptions and limitations of the FPR and conduct independent research to develop realistic financial projections for their own Itan franchise.