What is the required format for reports that Itan franchisees must submit?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
15.3. Reports.
(a) Generally. You must prepare all reports we require including, without limitation, the reports described below. Reports must be prepared in the form and manner we specify. You must send us a copy of any required report upon request. We may independently access your Technology Systems to retrieve and compile Business Data and generate any reports we deem appropriate, including Gross Sales reports.
(b) Report of Initial Investment Costs. To assist us in updating our Franchise Disclosure Document, you must complete and send us a report, in the form we designate, listing all expenses you incur in connection with the development and opening of your Salon. You must send us the completed report within 60 days after the opening date of your Salon.
(c) Gross Sales Reports. No later than each royalty fee due date, you must prepare and send us a statement of your Gross Sales for the prior reporting period. If you miscalculate Gross Sales, you must notify us of the error no later than the end of the next Gross Sales reporting period. Otherwise, you will not be entitled to any refund or credit of any fees paid to us based on previously reported Gross Sales.
(d) Advertising Expenditure Reports.
No later than 60 days after the expiration of your grand opening period, you must prepare and send us a report detailing your expenditures on your grand opening marketing campaign in accordance with §10.3(a).
No later than the 15th day of each month, you must prepare and send us a monthly report detailing your expenditures incurred during the prior month on local advertising required by §10.3(b).
All advertising expenditure reports must include copies of receipts for the reported expenditures.
- **15.4.
Financial Statements.** No later than the 15th day of each month, you must prepare and send us a monthly balance sheet and profit and loss statement for your Business in the format we prescribe.
Within 30 days after the end of each calendar quarter, you must prepare and send us a balance sheet (as of the end of the calendar quarter) and profit and loss statement for the prior calendar quarter.
Within 90 days after the end of each calendar year, you must prepare and send us a balance sheet (as of the end of the calendar year) and profit and loss statement for the prior calendar year.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must prepare all required reports in the format and manner specified by Itan. Itan can also independently access the franchisee's Technology Systems to retrieve and compile Business Data and generate any reports it deems appropriate, including Gross Sales reports.
Within 60 days after opening their salon, Itan franchisees must submit a report, in a format designated by Itan, listing all expenses incurred during the salon's development and opening. Franchisees must also send Itan a statement of Gross Sales for the prior reporting period no later than each royalty fee due date. If a franchisee miscalculates Gross Sales, they must notify Itan of the error no later than the end of the next Gross Sales reporting period to be entitled to any refund or credit of fees paid based on previously reported Gross Sales.
Within 60 days after the grand opening period, franchisees must submit a report detailing expenditures on their grand opening marketing campaign. Monthly reports detailing expenditures on local advertising are due no later than the 15th day of each month, including copies of receipts for the reported expenditures. Franchisees must also provide monthly, quarterly, and annual financial statements in a format prescribed by Itan, with specific deadlines for each.