What was the net change in the number of franchised Itan outlets during 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| TABLE 1 - SYSTEM-WIDE OUTLET SUMMARY FOR YEARS 2022 TO 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Outlet Type | Year | Net Change | ||||||
| Franchised | 2022 | 23 | 26 | +3 | ||||
| 2023 | 26 | 24 | -2 | |||||
| 2024 | 24 | 28 | +4 | |||||
| Company-Owned | 2022 | 8 | 5 | -3 | ||||
| 2023 | 5 | 5 | 0 | |||||
| 2024 | 5 | 0 | -5 | |||||
| Total Outlets | 2022 | 31 | 31 | 0 | ||||
| 2023 | 31 | 29 | -2 | |||||
| 2024 TABLE 2 - TRANSFERS OF OUTLETS FROM FRANCHISEES TO NEW OWNERS (OTHER THAN THE FRANCHISOR) FOR YEARS 2022 TO 2024 State | 29 | 28 | -1 | |||||
| California | 2022 2023 2024 | 9 0 0 | ||||||
| Total | TABLE 3 - STATUS OF FRANCHISED OUTLETS FOR YEARS 2022 TO 2024 | 2022 2023 2024 | 9 0 0 | |||||
| State | Year | Outlets at Start of Year | Outlets Opened | Termin ations | ||||
| 2022 | 23 | 3 | 0 | |||||
| California | 2023 | 26 | 0 | 0 | ||||
| 2024 | 24 | 5 | 0 | |||||
| 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, the net change in the number of franchised outlets during 2023 was -2. This means that Itan experienced a net decrease of two franchised locations during that year. At the start of 2023, there were 26 franchised outlets, and by the end of the year, the number decreased to 24.
This decrease could be due to several factors, such as franchise terminations, non-renewals, re acquisitions by the franchisor, or other reasons for ceasing operations. However, the table specifically indicates that there were 0 terminations and non-renewals, 0 re acquisitions by the franchisor. There were 2 outlets that ceased operations for other reasons. This suggests that the closures were not necessarily due to franchisees failing to meet Itan's standards or a lack of profitability, but rather other circumstances that led to the closure of these two locations.
For a prospective franchisee, this information highlights the importance of understanding the reasons behind outlet closures and the overall health of the Itan franchise system. While a decrease of two outlets in a single year may not be alarming, it is crucial to investigate the factors contributing to these closures and assess whether they pose a risk to future franchise operations. It is also important to note that while the total number of franchised locations decreased, there were no outlets opened during 2023.