What was the reported value of Itan's vehicles before accumulated depreciation?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
s using presently enacted tax rates.
The Company follows accounting standards which clarify the accounting for uncertainty in income taxes recognized in the financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax po
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the reported value of vehicles before accumulated depreciation was $82,012 in both 2024 and 2023. This figure represents the original cost of the vehicles owned by Itan before accounting for any depreciation.
For a prospective franchisee, understanding the value of Itan's assets, such as vehicles, can provide insights into the company's financial management and investment in its operations. The depreciation expense, which was $17,927 for 2024 and $443 for 2023, reflects the reduction in the value of these assets over time. This information is useful for assessing the overall financial health and stability of Itan.
It's important to note that the accumulated depreciation is subtracted from the original cost to arrive at the net book value of the vehicles. In this case, the original vehicle value was $82,012 in both 2024 and 2023. The document also mentions a note payable representing a five-year vehicle loan received in December 2023, with monthly payments of $1,690 at an interest rate of 5.84%. This indicates that Itan finances its vehicle acquisitions, which is a common practice for many businesses.
Prospective franchisees should consider these figures in conjunction with other financial data in the FDD to gain a comprehensive understanding of Itan's financial position and its approach to asset management and financing.