What is the Development Fee for Salon 5 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 5 is $199,500. This fee is imposed under the Area Development Agreement (ADA). In addition to the development fee, the initial franchise fee for Salon 5 is $34,000, which reflects a $15,500 discount.
The Development Fee is a one-time fee that Itan charges when granting a franchisee the rights to develop multiple salon locations within a specific territory. This fee compensates Itan for the time, resources, and support provided during the development phase, including site selection assistance, training, and marketing support. The initial franchise fee covers the costs associated with granting the franchise for a single location.
Prospective Itan franchisees should carefully consider the financial implications of the Development Fee, as it represents a significant upfront investment. It is important to evaluate the potential return on investment and ensure that sufficient capital is available to cover both the Development Fee and the costs associated with opening and operating multiple salon locations. Franchisees should also inquire about the specific services and support provided by Itan in exchange for the Development Fee to ensure that they are receiving adequate value for their investment.