What are the requirements for the financial statements that Itan franchisees must submit?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Financial statements must be: (a) verified and signed by you certifying to us that the information is true, complete, and accurate; (b) prepared on an accrual basis in compliance with Generally Accepted Accounting Principles; and (c) submitted in any format we reasonably require.
We may require that your financial statements be reviewed or audited by a certified public accountant if you submit materially inaccurate financial statements on a prior occasion.
You must send us a copy of any financial statement required by this Section upon request.
You hereby authorize us to disclose Operational Data to prospective franchisees, Governmental Authorities and other Persons for any reasonable business purpose, provided the disclosure is not prohibited by
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must submit a balance sheet and profit and loss statement to Itan within 90 days after the end of each calendar year. These financial documents must cover the prior calendar year.
The financial statements provided to Itan must adhere to specific standards. Franchisees must verify and sign the documents, certifying that the information is true, complete, and accurate. The statements must be prepared on an accrual basis, following Generally Accepted Accounting Principles (GAAP). Additionally, Itan can specify the format in which these financial statements are submitted.
Itan retains the right to request a review or audit of a franchisee's financial statements by a certified public accountant if the franchisee has previously submitted materially inaccurate financial statements. Franchisees must also provide copies of any financial statements required under this section upon request. Itan is authorized to disclose Operational Data to prospective franchisees, Governmental Authorities and other Persons for any reasonable business purpose, provided the disclosure is not prohibited by Law.