factual

What should prospective Itan franchisees do regarding the costs and expenses of operating a franchise business?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

The earnings claims figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

You should conduct an independent investigation of the costs and expenses you will incur in operating your franchise business.

Franchisees or former franchisees listed in the Disclosure Document may be one source of this information.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, prospective franchisees should conduct an independent investigation of the costs and expenses they will incur while operating their franchise business. This is crucial because the earnings claims figures provided by Itan do not reflect the costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. Therefore, relying solely on the franchisor's earnings claims without understanding the associated expenses could lead to inaccurate financial projections.

To gain a clearer understanding of potential costs, Itan suggests that prospective franchisees consult with current or former franchisees listed in the Disclosure Document. These individuals can provide firsthand insights into the actual expenses involved in running an Itan franchise, offering a more realistic view of the financial landscape. This direct feedback can be invaluable in creating a comprehensive business plan and financial forecast.

By undertaking this independent investigation, potential Itan franchisees can make informed decisions about their investment. Understanding all potential costs and expenses is essential for assessing the financial viability of the franchise and ensuring long-term success. Consulting with existing franchisees and seeking professional financial advice are prudent steps in this process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.