What is the discount amount on the initial franchise fee for Salon 2 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 |
| 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) STARTUP PACKAGE ITEMS PURCHASED | $30,000 (per Salon) | $261,500 (plus additional $30,000 for each Salon in excess of 7) |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the initial franchise fee for Salon 2 is discounted by $7,500. This means that instead of paying the standard initial franchise fee, a franchisee opening a Salon 2 location will receive a reduction of $7,500. The discounted initial franchise fee for Salon 2 is $42,000.
This discount can be a significant benefit for new franchisees as it lowers the initial investment required to start the business. The money saved could be used for other startup costs such as equipment, inventory, or marketing. It is important to note that this discount applies specifically to Salon 2 locations and may not be available for other salon types offered by Itan.
Prospective franchisees should carefully consider the different salon types and associated fees and discounts to determine which option best fits their financial situation and business goals. Understanding the specific terms and conditions related to each salon type is crucial for making an informed decision.