What utility payments are included in the Electricity and Gas costs for an Itan franchise?

According to Itan's 2025 Franchise Disclosure Document, the Electricity and Gas costs include payments to utilities companies for electricity and gas. This means that franchisees should expect to pay for both electricity and gas usage as part of their operating expenses. These costs are considered part of the 'Selected Operating Expenses' that Itan tracks for its franchised salons.

It is important for prospective franchisees to understand that these utility costs can vary depending on factors such as location, salon size, and energy consumption habits. The FDD provides a range of 'Selected Operating Expenses' as a percentage of gross sales, including Electricity and Gas. For Itan franchises, Electricity and Gas expenses ranged from 9.4% to 11.4% of gross sales, with a median of 6.8% and an average of 8.2% during the measuring period from January 1, 2024, to December 31, 2024.

Understanding these costs is crucial for developing a realistic financial projection for an Itan franchise. While the FDD provides historical data, franchisees should also consider potential fluctuations in utility rates and seasonal variations in energy consumption when estimating their expenses. Consulting with experienced franchisees and local utility providers can provide valuable insights into these costs.