What is the development fee for an Itan Salon 4?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement; provided, however, that the initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be determined in accordance with §5.3. You have no right to construct or operate a Salon until the parties have signed the Franchise Agreement and all ancillary agreements for that Salon. You must develop, open and operate each Salon in compliance with the Franchise Agreement and the Manual.
- 5.3. Initial Franchise Fees. The initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be as follows:
| INITIAL FRANCHISE FEE & DEVELOPMENT FEE | | | | | | | |-------
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 4 is $165,500. This fee is in addition to the initial franchise fee. The development fee grants the franchisee the rights to develop and operate salons within a specific territory, as outlined in the Development Agreement.
It is important to note that the Development Fee is nonrefundable once paid to Itan. This means that if a franchisee is unable to open the planned salons, they will not receive a refund of the development fee. This is a significant financial risk that prospective franchisees should carefully consider.
Prospective Itan franchisees should carefully review the Development Agreement and discuss the terms with Itan to fully understand the obligations and risks associated with the development fee. Understanding the specific requirements for site selection, franchise agreements, and development schedules is crucial before committing to the development of multiple Itan Salon locations.