What is the Development Fee for Salon 4 under the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Multi-Unit Discount is set forth below:
| Salon | Discount | Initial Franchise Fee | Development Fee (Imposed under ADA) |
|---|---|---|---|
| Salon 1 | No discount ( |
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 4 is $165,500. This fee is imposed under the Area Development Agreement (ADA). In addition to the development fee, the initial franchise fee for Salon 4 is $36,000, which reflects a $13,500 discount.
The Development Fee is a one-time fee that Itan charges to franchisees who commit to opening multiple locations. This fee compensates Itan for granting the franchisee exclusive development rights within a specific geographic area and timeframe. The fee is non-refundable.
Prospective Itan franchisees should carefully consider the financial implications of the Development Fee, as it represents a significant upfront investment in addition to the initial franchise fee and other startup costs. Franchisees should also inquire about the specific terms and conditions of the Area Development Agreement, including the development schedule, geographic territory, and performance requirements.