What were the total Itan membership and technology service 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) | 56,974 | |
| TOTAL LIABILITIES | 338,171 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total membership and technology service fees for 2022 were $24,761. This figure represents the income Itan received from its franchisees for various technology-related services and membership benefits. These fees are a component of the overall revenue stream for the franchisor.
For a prospective Itan franchisee, understanding the composition of these fees is crucial. The FDD states that membership and technology service fees include salon transfer fees, technology fees, shareport license fees, and fees related to electronic funds transfers. Knowing the specific amounts and how they are calculated allows a franchisee to forecast their expenses accurately and assess the value they receive in return for these fees.
It's important to note that these fees can fluctuate year to year, as seen by the difference between 2022 ($24,761) and 2023 ($22,788). This variation could be due to changes in the number of franchisees, adjustments in the fee structure, or the adoption rate of specific technology services. A potential franchisee should investigate the reasons behind these fluctuations to better understand the stability and predictability of these costs.