What is the estimated range for the lease deposit for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE 1 | AMOUNT | METHOD OF | WHEN DUE | |
|---|---|---|---|---|
| PAYMENT | ||||
| Lease Deposit 4 | $1,800 to $8,000 | As incurred | Before opening | Landlord |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the estimated lease deposit for a location ranges from $1,800 to $8,000. This estimate assumes that the franchisee will lease the premises for their Itan salon. The actual rent and deposit amounts can vary significantly based on the size and location of the premises, as well as local market conditions.
The FDD notes that most Itan salons range from 1,500 to 2,000 square feet, with a recommendation of 1,700 square feet, and typically include 10 to 15 rooms. The rent for such spaces is expected to be between $1,800 and $8,000 per month. Landlords usually require a security deposit, which can be equal to one or two months' rent. In addition to the security deposit, landlords may also require advance payment for the first and/or last month's rent. The lease deposit estimate provided includes one month's security.
It is important to note that the initial investment table includes a separate line item for "Additional Funds," which covers the initial three months' rent. This means that in addition to the lease deposit, franchisees should budget for the first three months of rent payments. Some franchisees may choose to purchase the real estate instead of leasing, but the cost of purchasing real estate can vary widely, making it difficult to provide a reasonable estimate in the FDD.