What is the development fee for an Itan Salon 3?
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) |
| ATTACHMENT "B" | Form of Site Approval Notice | |
| ATTACHMENT "C" | Lease Addendum | |
| ATTACHMENT "D" | Franchise Owner Agreement | |
| ATTACHMENT "E" | ACH Authorization Form | |
| ATTACHMENT "F" | Brand Protection Agreement | |
| ATTACHMENT "G" | Confidentiality Agreement | |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the development fee for a Salon 3 is $129,500. This fee is in addition to the initial franchise fee of $38,000 for a Salon 3. The development fee is payable upon the execution of the Area Development Agreement (ADA).
The Development Fee covers the right and obligation to develop and operate the required number of Itan salons within a specific territory, as outlined in the Development Schedule. It also grants the option to develop additional salons during the term of the agreement. However, franchisees must sign a separate Franchise Agreement for each salon they plan to open, and Itan will not review proposed sites until the Franchise Agreement is signed.
It is important to note that the Development Fee, along with the initial franchise fees for the required salons, are fully earned and nonrefundable upon receipt by Itan. This means that if a franchisee is unable to open all of the salons outlined in the Development Schedule, they will not receive a refund of the Development Fee. Prospective franchisees should carefully consider their ability to meet the development obligations before entering into an Area Development Agreement with Itan.