What were the Itan membership and technology service fees in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| ACCETC | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 349,230 | $ 18,409 |
| Accounts receivable | 96,871 | 101,411 |
| Due from related parties (note 5) | 1,550,230 | 1,399,221 |
| Prepaid expenses | 9,196 | 83,782 |
| Prepaid taxes | 5,150 | 5,087 |
| Deferred tax asset (note 9) | 37,027 | 4,661 |
| belefied tax asset (note 5) | 37,027 | 1,001 |
| 2,042,554 | 1,612,571 | |
| PROPERTY AND EQUIPMENT (note 3) | 88,280 | 657 |
| TOTAL ASSETS | 2,130,834 | 1,613,228 |
| 101/12/105215 | 2,130,031 | |
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | 3,765 | 792 |
| Accrued liabilities (note 7) | 47,595 | 31,399 |
| Accrued taxes | 60,182 | 15,473 |
| Contract liabilities (note 8) | 115,000 | - |
| Deferred tax liability (note 9) | 39,617 | 45,047 |
| Note payable - current portion (note 10) | 15,038 | - |
| 281,197 | 92,711 | |
| LONG TERM LANGUETES | ||
| LONG TERM LIABILI |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total membership and technology service fees collected from franchisees in 2023 amounted to $22,788. This figure represents the aggregate of several distinct fees that Itan charges its franchisees. These fees include technology fees, SharePort license fees, and electronic funds transfer (EFT) service fees.
It is important to note that these fees are ongoing and contribute to Itan's revenue stream. The technology fees are set at $30 per salon per month, while EFT services cost $10 per salon per month. SharePort license fees range from $4 to $20 per user per month. These recurring charges are in addition to any initial franchise fees or royalties based on a percentage of sales.
Prospective franchisees should carefully consider these ongoing costs when evaluating the financial viability of an Itan franchise. Understanding the breakdown of these fees and how they are calculated is crucial for accurate financial forecasting. Franchisees should also inquire about any potential changes to these fees in the future, as they can impact profitability.