What was the Itan operating income 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 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the operating income for 2023 was $317,508. This figure represents the company's earnings from its core business operations before accounting for other income, expenses, interest, and taxes. For a prospective franchisee, operating income is a key indicator of the profitability and efficiency of Itan's business model. It reflects the revenue generated from royalties, membership and technology service fees, salon transfer fees, and franchise renewal fees, minus the costs associated with running the business, such as auto expenses, depreciation, insurance, office costs, payroll, professional fees, lease payments, taxes, travel, and utilities.
It is important to note that this operating income is specifically for Itan Franchising, Inc. and not for individual franchise locations. A potential franchisee would need to analyze the financial performance of existing franchise units to understand their potential profitability. The FDD provides further details on the various revenue streams and operating expenses that contribute to this operating income, allowing potential franchisees to assess the financial health and stability of Itan.
Understanding the components of Itan's operating income can help a franchisee evaluate the potential return on investment and the factors that could impact their own franchise's financial performance. For example, changes in royalty fees, marketing expenses, or payroll costs could significantly affect the operating income of both the franchisor and the franchisee. Therefore, a thorough review of the FDD and discussions with existing franchisees are essential steps in the due diligence process.