What was the Itan operating income 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 | = |
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 Itan in 2024 was $66,320. This figure represents the company's earnings from its core business operations before taking into account other income, expenses, interest, and taxes. In comparison, Itan's operating income in 2023 was $317,508, indicating a significant decrease in operating income from 2023 to 2024.
For a prospective franchisee, this information is crucial as it provides insight into the financial performance of Itan's franchising operations. A lower operating income in 2024 compared to the previous year could signal potential challenges or changes in the business model that require further investigation. It is important to understand the reasons behind this decrease, such as increased operating expenses or decreased revenues, to assess the financial stability and growth potential of the franchise.
Itan's FDD also details specific revenue streams and operating expenses. Royalties accounted for $863,175 in 2024, up from $746,395 in 2023, while membership and technology service fees were $32,676 in 2024, compared to $22,788 in 2023. Key operating expenses for 2024 included payroll costs of $392,761, insurance expenses of $72,234, and outside services costing $83,583. Reviewing these figures in detail helps potential franchisees understand where Itan's revenue comes from and where its money is spent, which is essential for evaluating the financial health and sustainability of the franchise system.
Prospective franchisees should consider these figures in conjunction with other financial data in the FDD, such as cash flow statements and balance sheets, to gain a comprehensive understanding of Itan's financial performance. It is also advisable to discuss these figures with current franchisees and seek professional financial advice to make an informed investment decision.