What was the total amount KHI paid for expenses on behalf of the Itan Company during 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")
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Kharsa Holdings, Inc. (KHI) paid $3,030 for expenses on behalf of Itan during the year ended December 31, 2023. KHI is identified as a related party under common control of Itan's owner. These related party transactions are disclosed to provide transparency into the financial relationships between Itan and its affiliates.
Understanding these related-party transactions is crucial for prospective franchisees. It allows them to assess the financial interdependence between Itan and its related entities. The FDD also indicates that the companies share common expenses.
It is important to note that the FDD states that Itan and its related entities are not parties to any arrangements in which they are liable for mutual financial support, nor are they involved in events that would cause Itan to report a loss beyond any amounts reported as receivables. This suggests that while transactions occur between these entities, Itan's financial stability is intended to remain independent.