What is the development fee for Salon 3 under the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Salon | Discount | Initial Franchise Fee | Development Fee (Imposed under ADA) |
|---|---|---|---|
| Salon 1 | No discount (Unless Veterans Discount applies) | $49,500 | N/A – 3 unit minimum for ADA |
| Salon 2 | $7,500 Discount | $42,000 | N/A – 3 unit minimum for ADA |
| Salon 3 | $11,500 Discount | $38,000 | $129,500 |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the development fee for Salon 3 is $129,500. This fee is imposed under the Area Development Agreement (ADA). The initial franchise fee for Salon 3 is $38,000, which reflects an $11,500 discount.
The development fee is a one-time charge that Itan franchisees pay when they commit to opening multiple locations. This fee compensates Itan for granting the franchisee exclusive development rights within a specific territory. It is in addition to the initial franchise fee for each individual salon.
Prospective Itan franchisees should carefully consider the financial implications of the development fee, as it represents a significant upfront investment. They should also evaluate their ability to successfully manage and operate multiple salon locations within the designated development area. It is important to note that development fees are nonrefundable, so franchisees should conduct thorough due diligence before entering into an Area Development Agreement with Itan.