What is the amount and payment schedule for the initial franchise fee for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ong as you comply with this Agreement and do not act in a disruptive, abusive or counter-productive manner. As a member, you would be entitled to all voting rights and privileges granted to other council members. Each member would have one vote on all matters on which members are authorized to vote.
13. FEES
- 13.1. Initial Franchise Fee. You agree to pay us an initial franchise fee in the amount set forth in Part B of ATTACHMENT "A" in one lump sum at the time you sign this Agreement. The initial franchise fee is fully earned by us and nonrefundable once this Agreement is signed.
- 13.2. Royalty Fee. On the day of each week we specify (the "royalty fee due date") you must pay us a royalty fee equal to 6.5% of Gross Sales generated during the immediately preceding reporting period. The current reporting period runs from the opening of business on Monday through the close of business on Sunday. The current royalty fee due date is the Wednesday immediately following the end of the prior reporting period. We may periodically change the reporting period and/or royalty fee due date through updates to the Manual.
- 13.3. Other Fees & Payments. You must pay all other fees, expense reimbursements and other amounts specified in this Agreement in a timely manner as if fully set forth in §13. You also agree to promptly pay us an amount equal to all taxes levied or assessed against us based on goods or services you sell or goods or services we furnish to you, excluding income taxes imposed on us based on fees you pay us under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the initial franchise fee is paid in a single lump sum when the franchise agreement is signed. This fee is outlined in Part B of ATTACHMENT "A" of the agreement. Once the agreement is signed, the initial franchise fee is considered fully earned by Itan and is nonrefundable.
However, there is a reduced initial franchise fee available to franchisees converting an existing business to an Itan salon. If the franchisee operated their current business for at least one year before signing the Franchise Agreement, the initial franchise fee is reduced to $15,000. This discount does not apply if the Franchise Agreement is executed under an Area Development Agreement.
For franchisees entering into an Area Development Agreement, the development fee paid covers the initial franchise fees for the required salons listed in the Development Schedule. This development fee, like the standard initial franchise fee, is fully earned and nonrefundable upon receipt by Itan.