What was the Itan net earnings amount at the end of 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 |
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 the company at the end of 2023 were $272,146. This figure represents the profit Itan retained after deducting all expenses, including income tax, from its total revenue for that year. Net earnings are a key indicator of Itan's overall financial performance and profitability.
For a prospective franchisee, understanding Itan's net earnings is crucial for assessing the financial health and stability of the franchisor. A consistently positive net earnings trend suggests that the franchisor is well-managed and has a sustainable business model. This can provide reassurance to franchisees about the potential for long-term support and growth opportunities within the Itan franchise system.
However, it's important to note that the franchisor's net earnings do not directly translate into a franchisee's potential earnings. A franchisee's profitability will depend on various factors, including location, operating costs, and their ability to manage the business effectively. Therefore, while Itan's net earnings provide valuable insight into the franchisor's financial standing, prospective franchisees should also conduct their own due diligence and financial projections to estimate their potential earnings.