What were the Itan salon transfer fees in 2022?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| ACCETC | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 349,230 | $ 18,409 |
| Accounts receivable | 96,871 | 101,411 |
| Due from related parties (note 5) | 1,550,230 | 1,399,221 |
| Prepaid expenses | 9,196 | 83,782 |
| Prepaid taxes | 5,150 | 5,087 |
| Deferred tax asset (note 9) | 37,027 | 4,661 |
| belefied tax asset (note 5) | 37,027 | 1,001 |
| 2,042,554 | 1,612,571 | |
| PROPERTY AND EQUIPMENT (note 3) | 88,280 | 657 |
| TOTAL ASSETS | 2,130,834 | 1,613,228 |
| 101/12/105215 | 2,130,031 | |
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | 3,765 | 792 |
| Accrued liabilities (note 7) | 47,595 | 31,399 |
| Accrued taxes | 60,182 | 15,473 |
| Contract liabilities (note 8) | 115,000 | - |
| Deferred tax liability (note 9) | 39,617 | 45,047 |
| Note payable - current portion (note 10) | 15,038 | - |
| 281,197 | 92,711 | |
| LONG TERM LANGUETES | ||
| LONG TERM LIABILITIES | FC 074 | |
| Note payable (note 10 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total salon transfer fees collected by Itan in 2022 amounted to $24,000. This figure represents the aggregate of all fees received from the sale or transfer of existing Itan franchise locations to new owners during that year.
For a prospective franchisee, this indicates that Itan generates revenue not only from royalties and other ongoing fees but also from the transfer of ownership between franchisees. The fact that Itan collected $24,000 in transfer fees in 2022 suggests that there were multiple instances of franchise resales or transfers during that year.
It is important to note that while the total amount of transfer fees is disclosed, the FDD does not specify the individual transfer fee charged per transaction in 2022. However, another section of the FDD states that the transfer fee is $10,000. The prospective franchisee should inquire with Itan about the number of transfers that occurred in 2022 to better understand the dynamics of franchise resales within the Itan system.