What were the total Itan royalties in 2024?
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 li |
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 2024 were $863,175. This figure represents the income Itan Franchising, Inc. received from its franchisees based on a percentage of their gross sales. Royalties are a primary revenue stream for franchisors, and this number reflects the overall performance and size of the Itan franchise system.
For a prospective Itan franchisee, understanding the franchisor's royalty income is crucial. It provides insight into the financial health and stability of the franchisor. A growing royalty income suggests that existing franchisees are performing well and the system is expanding. Conversely, a declining royalty income could indicate problems within the franchise system.
It is important to note that this figure represents the total royalties collected from all Itan franchises. Individual franchisees will pay royalties based on their own sales performance, as defined in the franchise agreement. Reviewing the trend in royalty income from year to year, as well as comparing it to other revenue streams, can offer a more comprehensive view of Itan's financial standing.