What was the median cost of goods sold for Itan?
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% | |
| Gross Profit | $ 186,997 | $729,005 | $462,734 | $483,330 | 94% | 13 | 46% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–42)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the median cost of goods sold for the reported period was $34,740. This data is based on the financial performance of 28 qualifying franchised salons that were open and operating throughout the entire measuring period from January 1, 2024, to December 31, 2024, and provided all requested data. The cost of goods sold represents 6% of gross sales.
For a prospective Itan franchisee, this figure provides a benchmark for understanding the typical cost of merchandise and retail items purchased for resale. It's important to note that this is a median value, meaning that half of the salons had a cost of goods sold higher than this amount, and half had lower. The FDD also indicates that the lowest cost of goods sold was $19,984, while the highest was $40,263.
It is crucial for potential franchisees to consider that their individual results may differ. Factors such as location, management skills, and local market conditions can significantly impact financial performance. Itan advises consulting with financial advisors to develop personalized revenue estimates for their salon. The FDD also notes that franchisees will incur additional expenses beyond the cost of goods sold, such as insurance, session consumables, and utilities, which are not included in this particular financial performance representation.