For the year ended December 31, 2023, what was the total lease expense for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Computers and equipment | $ 25,753 | $ 25,753 |
| Furniture | 18,716 | 18,716 |
| Vehicles | 82,012 | 82,012 |
| 126,481 | 126,481 | |
| Less: accumulated depreciation | ||
| (56,128) | (38,201) | |
| $ 70,353 | $ 88,280 |
Depreciation expense
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total lease expense for the year ended December 31, 2023, was $35,933. This figure represents the amount Itan paid for leasing office space during that year. The lease is with a related party through common ownership and commenced on November 1, 2018, continuing as a month-to-month tenancy.
The lease terms allow either party to terminate the agreement with a 30-day written notice. The monthly payments, which cover rent and common area maintenance, are reviewed periodically and may be adjusted. The FDD also notes that the monthly payments were approximately $3,000 for rent and common area maintenance.
Prospective franchisees should be aware that these lease expenses are specific to Itan's corporate operations and not necessarily indicative of the real estate costs a franchisee might incur. Franchisees typically lease their own locations, and those costs can vary significantly based on location, size, and market conditions. It is important for potential franchisees to conduct thorough market research and due diligence to estimate their own potential lease expenses.