What were the total Itan membership and technology service fees in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |||
|---|---|---|---|---|
| 1 | ||||
| SALES | _ | 1 | ||
| Royalties | $ | 746,395 | $ | 685,019 |
| Membership and technology service fees | 22,788 | 24,761 | ||
| Salon transfer fees | ~ | 24,000 | ||
| Franchise renewal fee | 769,183 | 12 | 4,000 737,780 |
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 Itan in 2023 were $22,788. This figure represents the income Itan received from its franchisees for various technology-related services and membership benefits. These fees are a component of Itan's overall revenue and reflect the ongoing support and resources provided to franchisees.
Membership and technology service fees include salon transfer fees, salon renewal fees, technology fees, SharePort license fees, LMS platform fees, and fees related to electronic funds transfers. The FDD specifies that salon transfer fee revenues are recorded when an existing franchise location is sold or transferred, subject to Itan's approval. Additionally, Itan collects ongoing Technology Fees of $30 per salon per month, EFT Services fees of $10 per salon per month, Share Port License Fees of $4-$20 per user per month, and LMS Platform Fees of $50 per salon per month. Franchise Renewal Fees are $1,000 due at renewal.
For a prospective Itan franchisee, understanding the composition and purpose of these fees is crucial. These fees contribute to the franchisor's revenue and are used to support the technology infrastructure and membership benefits that franchisees receive. Franchisees should factor these ongoing costs into their financial projections and business plans. It is also important to understand how these fees might change over time, as technology evolves and Itan updates its service offerings.
It is worth noting that the membership and technology service fees decreased from $24,761 in 2022 to $22,788 in 2023. This decrease could be due to a variety of factors, such as changes in the number of franchisees, adjustments to the fee structure, or variations in the usage of technology services. Prospective franchisees may want to inquire about the reasons for this change and whether Itan anticipates any further adjustments to these fees in the future.