What is the discount on the initial franchise fee for Itan Salon 2?
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, the initial franchise fee for Salon 2 is discounted by $7,500. The initial franchise fee for Salon 2 is $42,000 after the discount is applied. This discount is part of the Multi-Unit Discount, which requires purchasing franchises for two or more salons simultaneously, signing all franchise agreements at the same time, and paying the initial franchise fee in full for all salons upon signing the agreements.
This discount structure incentivizes franchisees to invest in multiple Itan locations from the outset. By reducing the initial franchise fee for subsequent salons, Itan aims to encourage faster expansion and market penetration. However, franchisees should be aware that to qualify for this discount, they must commit to developing multiple salons concurrently, which requires a significant upfront investment.
It is important to note that the discount for Salon 2 is only applicable under the Multi-Unit Discount program. If a franchisee is only purchasing a single Salon 2 location, they would not be eligible for this specific discount. Prospective franchisees should carefully consider their expansion plans and financial capabilities to determine if the Multi-Unit Discount is a viable option for them. They should also inquire about any other potential discounts or incentives that may be available based on their individual circumstances.