What was the Itan net earnings in 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
le | 16,029 | 3,765 | | Accrued liabilities (note 7) | 63,191 | 47,595 | | Accrued taxes | 訓 | 60,182 | | Contract liabilities (note 8) | 103,500 | 115,000 | | Deferred tax liability (note 9) | 49,948 | 39,617 | | Note payable - current portion (note 10) | 17,413 | 15,038 | | | 250,081 | 281,197 | | LONG TERM LIABILITIES | | | | Note payable (note 10) | 39,561 | 56,974 | | TOTAL LIABILITIES | 289,642 | 338,171 | | STOCKHOLDER'S EQUITY | | | | Common stock (note 11) | 50,000 | 50,000 | | Additional paid in capital | 38,000 | 38,000 | | Accumulated earnings | 1,724,052 | 1,704,663 | | | 1,812,052 | 1,792,663 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 2,101,694 | $ 2,130,834 |
| 2024 | · | 2023 | ||
|---|---|---|---|---|
| SALES | ||||
| Royalties | $ | 863,175 | $ | 746,395 |
| Membership and technology service fees | 32,676 | 22,788 | ||
| Franchise renewal fee | 1,000 | = | ||
| Area development agreement fees (note 8) | _ | 11,500 908,351 | 769,183 | |
| OPERATING EXPENSES | ||||
| Auto | 14,241 | 8,000 | ||
| Credit loss | 284 | = | ||
| Depreciation | 17,927 | 443 | ||
| Dues and subscriptions | 8,507 | 6,945 | ||
| Insurance | 72,234 | 85,562 | ||
| Office | 98,068 | 14,371 | ||
| Outside services | 83,583 | 51,677 | ||
| Payroll costs | 392,761 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company's net earnings for the year 2024 were $19,389. This figure represents the profit Itan Franchising, Inc. retained after deducting all expenses, including the cost of operations, marketing fund activities, interest, and income taxes, from its total revenues for that year. In comparison, Itan's net earnings for the year 2023 were $272,146.
For a prospective franchisee, net earnings indicate the financial health and profitability of the franchisor. A positive net earning suggests that the company is operating sustainably and has the potential to support its franchisees. However, a significant decrease in net earnings, as seen from 2023 to 2024, could raise concerns about the franchisor's financial stability and its ability to provide ongoing support and resources to franchisees.
It is important to note that the net earnings of the franchisor do not directly translate to the potential profitability of an individual franchise location. A franchisee's success will depend on various factors, including location, market conditions, management skills, and adherence to the Itan franchise system. Therefore, while the franchisor's net earnings provide insight into the overall health of the company, prospective franchisees should conduct their own due diligence and financial analysis to assess the potential profitability of their specific franchise location.