What is the Development Fee amount for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| INITIAL FRANCHISE FEE & DEVELOPMENT FEE | ||
|---|---|---|
| Salon | Development Fee | |
| Salon 1 | $49,500 | N/A – 3 unit minimum for ADA |
| Salon 2 | $42,000 | N/A – 3 unit minimum for ADA |
| Salon 3 | $38,000 | $129,500 |
| Salon 4 | $36,000 | $165,500 |
| Salon 5 | $34,000 | $199,500 |
| Salon 6 | $32,000 | $231,500 |
| Salon 7+ | $30,000 (per Salon) Deal Tellis | $261,500 (plus additional $30,000 for each Salon in excess of 7) |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the Development Fee varies based on the number of salons a franchisee commits to developing. For the third salon, the Development Fee is $129,500. It increases to $165,500 for the fourth salon, $199,500 for the fifth, and $231,500 for the sixth. For franchisees committing to seven or more salons, the Development Fee is $261,500, plus an additional $30,000 for each salon beyond the seventh.
It is important to note that these Development Fees are applicable under an Area Development Agreement (ADA), and there is a minimum requirement of three units to qualify for such an agreement. The Development Fee covers the initial franchise fees for all required salons outlined in the Development Schedule. This fee is fully earned and nonrefundable upon receipt by Itan.
Prospective franchisees should carefully consider the number of salons they plan to develop, as this decision directly impacts the Development Fee. It's also crucial to understand that the initial franchise fee is included within the Development Fee, meaning franchisees do not pay a separate initial franchise fee for each salon under the ADA. Franchisees should also be aware that the Development Fee is nonrefundable, so a well-thought-out development plan is essential before entering into an Area Development Agreement with Itan.