What was the Itan net earnings amount at the end of 2022?
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 | ||
| Interes |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the net earnings at the end of 2022 were $233,770. This figure represents the company's profitability after deducting all expenses, including the income tax expense of $117,133, from the income before taxes, which was $350,903.
For a prospective Itan franchisee, understanding the franchisor's net earnings can provide insight into the financial health and stability of the company. A higher net earnings figure generally indicates a more profitable and sustainable business model. This can be a positive sign for potential franchisees, suggesting that Itan is well-managed and has the potential to provide ongoing support and resources to its franchisees.
It is important to note that while the franchisor's financial performance can be an indicator, it does not guarantee the success of an individual franchise location. Franchisees should conduct their own due diligence, including reviewing the financial performance of existing franchise locations and consulting with financial advisors, to assess the potential profitability of their own Itan franchise.