What was the net earnings for Itan in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 LIABILITIES | FC 074 | | | Note payable (note 10) | 56,974 | | | TOTAL LIABILITIES | 338,171 | 92,711 | | STOCKHOLDER'S EQUITY | | | | Common stock (note 11) | 50,000 | 50,000 | | Additional paid in capital | 38,000 | 38,000 | | Accumulated earnings | 1,704,663 | 1,432,517 | | | 1,792,663 | 1,520,517 | | TOTAL MARKITISS AND STOCKHOLDS PICTORY | | 4 640 065 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 2,130,834 | $ 1,613,228 |
| 2023 | 2022 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SALES | _ | 1 | ||||||||||||
| Royalties | $ | 746,395 | $ | 685,019 | ||||||||||
| Membership and technology service fees | 22,788 | 24,761 | ||||||||||||
| Salon transfer fees | ~ | 24,000 | ||||||||||||
| Franchise renewal fee | 769,183 | 12 | 4,000 737,780 | |||||||||||
| OPERATING EXPENSES | ||||||||||||||
| Auto | 8,000 | 8,286 | ||||||||||||
| Depreciation | 443 | 1,543 | ||||||||||||
| Dues and subscriptions | 6,945 | 3,493 | ||||||||||||
| Franchise marketing | = | 54 | ||||||||||||
| Insurance | 85,562 | 75,633 | ||||||||||||
| Office | 14,371 | 7,906 | ||||||||||||
| Outside services | 51,677 | 14,419 | ||||||||||||
| Payroll costs | 207,031 | 238,355 | ||||||||||||
| Professional fees | 25,584 | 27,707 | ||||||||||||
| Lease | 35,933 | 35,112 | ||||||||||||
| Taxes and licenses | 325 | 325 | ||||||||||||
| Travel and meetings | 9,249 | 8,677 | ||||||||||||
| Utilities | 14,555 451,675 | ë- | 13,210 426,434 | |||||||||||
| OPERATING INCOME | 317,508 | 311,346 | ||||||||||||
| OTHER INCOME/(EXPENSES) | ||||||||||||||
| Marketing fund fees | 635,751 | 591,317 | ||||||||||||
| Other income (note 12) | 12 | 105,969 | ||||||||||||
| Interest income | 12 | 286 | ||||||||||||
| Loss on disposal of asset | H | (900) | ||||||||||||
| Marketing fund expenses | (581,424) 54,327 | (657,115) 39,557 | ||||||||||||
| INCOME BEFORE TAXES | 371,835 | 350,903 | ||||||||||||
| INCOME TAX EXPENSE (note 9) | (99,689) | ş | (117,133) | |||||||||||
| NET EARNINGS | $ | 272,146 | $ | 233,770 | ||||||||||
| Commo | n stock | itional id in | Accumulated | Total stockholder's | ||||||||||
| ------------------------------ | -------- | ----------- | --------- | ------------------ | -------------- | ------------------------ | --------- | -- | --------- | -- | --------- | -- | ---------- | -------- |
| Shares | Amount | capital | capital | capital | capital | capital | earnings | equity | ||||||
| Bal |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the net earnings for Itan in 2023 were $272,146. This figure represents the company's profit after all expenses and taxes have been deducted from its total revenues for that year. This information is derived from the company's audited financial statements.
For a prospective franchisee, net earnings provide insight into the overall financial health and profitability of Itan. A higher net earnings figure generally indicates a more stable and successful franchise system. It demonstrates Itan's ability to manage its finances effectively and generate profit.
It is important to note that past financial performance is not necessarily indicative of future results. However, reviewing several years of financial statements, including net earnings, can help potential franchisees assess the franchisor's financial trends and stability. This information, combined with other due diligence, can inform their decision-making process.