What was the total amount due to KHI from the Itan Company as of December 31, 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
$3,133 for rent and common area maintenance.
Lease expense for the years ended December 31, 2024 and 2023 was $37,022 and $35,933, respectively.
NOTE 5 RELATED PARTY TRANSACTIONS
Kharsa Holdings, Inc. ("KHI") and Evolv Brands, Inc. ("Evolv") are under common control of the Company's owner. KHI paid marketing fund fees to the Company during 2023, and the c
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, as of December 31, 2023, Itan owed Kharsa Holdings, Inc. (KHI) a total of $181. This amount is reflected in accounts payable on Itan's balance sheets. KHI is identified as a related party under common control of Itan's owner.
In addition to the $181, the document states that during the year ended December 31, 2023, KHI paid for expenses on behalf of Itan totaling $3,030, while Itan paid for expenses on behalf of KHI totaling $69,478. The $181 represents the remaining balance due to KHI after these expense payments were reconciled.
It is important for a prospective Itan franchisee to understand these related-party transactions, as they can impact the company's financial performance and stability. Significant transactions with related parties may require additional scrutiny to ensure they are conducted at arm's length and are in the best interest of Itan. Franchisees should seek clarification from Itan regarding the nature and extent of these related-party transactions and their potential impact on the franchise system.