What is the development fee for Itan Salon 7+?
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 Salon 7+ is $261,500, plus an additional $30,000 for each salon in excess of 7. This fee is applicable when a franchisee commits to developing multiple Itan salon locations under an Area Development Agreement (ADA).
For a prospective Itan franchisee, this means that if they plan to open more than 7 salons, they will need to pay the base development fee of $261,500, and then add $30,000 for each additional salon beyond the initial 7. For example, if a franchisee commits to opening 10 salons, the development fee would be $261,500 + (3 x $30,000) = $351,500. This fee structure incentivizes larger-scale development commitments.
It is important to note that the development fee covers the initial franchise fees for the salons included in the development agreement. This fee is fully earned and nonrefundable upon receipt by Itan. Prospective franchisees should carefully consider the number of salons they commit to developing, as they will be obligated to pay the corresponding development fee upfront.