What is the discount amount for the fifth Itan salon if I qualify for the Multi-Unit Discount?
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 |
| Salon 4 | $13,500 Discount | $36,000 | $165,500 |
| Salon 5 | $15,500 Discount | $34,000 | $199,500 |
| Salon 6 | $17,500 Discount | $32,000 | $231,500 |
| Salon 7+ | $19,500 Discount (per Salon) | $30,000 (per Salon) | $261,500 (plus additional $30,000 for each Salon in excess of 7) |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee who qualifies for the Multi-Unit Discount will receive a $15,500 discount on the initial franchise fee for their fifth salon. This reduces the initial franchise fee from the standard $49,500 to $34,000. To qualify for the Multi-Unit Discount, the franchisee must purchase franchises for two or more salons simultaneously, sign all Franchise Agreements at the same time, and pay the initial franchise fee in full for all salons upon signing the agreements.
The Multi-Unit Discount is structured to incentivize franchisees to open multiple Itan locations. The discount increases with each additional salon purchased, offering a significant cost savings for franchisees committed to developing multiple units. This tiered discount structure can make it more attractive for entrepreneurs to expand their operations with Itan.
It's important to note that the Multi-Unit Discount cannot be combined with other discounts, except as explicitly provided. Therefore, a franchisee must evaluate which discount provides the greatest financial benefit. For example, if a veteran is purchasing their fifth salon, they would need to compare the Veterans Discount with the Multi-Unit Discount to determine which offers the lower initial franchise fee. The FDD states that if multiple discounts apply, the franchisee will receive the discount that results in the lowest initial franchise fee.