What were the total Itan royalties in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 12,947 | $ 349,230 |
| Accounts receivable | 126,374 | 96,871 |
| Due from related parties (note 5) | 1,700,000 | 1,550,230 |
| Prepaid expenses | 13,426 | 9,196 |
| Prepaid taxes | 137,975 | - |
| Deferred tax asset (note 9) | 40,619 | 37,027 |
| 2,031,341 | 2,042,554 | |
| PROPERTY AND EQUIPMENT (note 3) | 70,353 | 88,280 |
| The Entry Alb Equilibria (note 3) | ||
| TOTAL ASSETS | 2,101,694 | 2,130,834 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | 16,029 | 3,765 |
| Accrued liabilities (note 7) | 63,191 | 47,595 |
| Accrued taxes | 訓 | 60,182 |
| Contract liabilities (note 8) | 103,500 | 115,000 |
| Deferred tax liability (note 9) | 49,948 | 39,617 |
| Note payable - current portion (note 10) | 17,413 | 15,038 |
| 250,081 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total royalties for Itan in 2023 were $746,395. This figure represents the income Itan Franchising, Inc. received from its franchisees based on a percentage of their sales. Royalties are a primary revenue stream for franchisors, and this number reflects the overall performance and size of the Itan franchise system during that year.
For a prospective franchisee, understanding the franchisor's royalty income is crucial as it indicates the financial health and stability of the franchise system. A consistent and growing royalty income suggests that franchisees are performing well and the brand is maintaining its market position. This can be a positive sign for potential investors.
However, it's also important to consider this figure in the context of Itan's overall financial performance. While $746,395 in royalties might seem substantial, it should be compared to Itan's operating expenses and net earnings to assess the company's profitability. Additionally, prospective franchisees should investigate how royalty fees are calculated and what services or support they receive in return for these payments.