What is the estimated range for signage costs for an Itan franchise?
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) |
| FIT Bodywrap® | FDTC | $4,000 | |
| TANOLOGY® skincare products | EVOLV | $150 to $200 | |
| BRONZE LUMINESSENCE™ lotion | EVOLV | $150 | |
| CALIFORNIA SPA® Ageless Serum | EVOLV | $104 | |
| Branded Supplies (e.g., name tags, bed tents, iTAN tote bags and key tags) | EVOLV | $250 | |
| Total | $4,654 to $4,704 | ||
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
| Late Fee | $100 plus default interest at lesser of (a) 18% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law | 10 days after invoice | If we debit your account but there are insufficient funds, or a check you issue is returned due to insufficient funds, then we may charge (in addition to the late fee) an NSF fee of $100 per incident. In California, default interest is limited to 10% per annum. |
| Noncompliance fee | $500 per incident | Upon demand | Imposed if you breach a mandatory standard or operating procedure (including submission of required reports) and fail to cure within the time period we require. We may impose an additional $500 fee every 48 hours the breach remains uncured after we impose the initial fee. We will deposit these fees into the brand fund. |
| Default Reimbursements | All costs we incur to cure your default | 10 days after invoice | If you fail to cure a breach of the Franchise Agreement or our brand standards in the time period we require, we may take steps to cure on your behalf and you must reimburse us for our costs (examples include failure to pay suppliers, maintain insurance or meet quality standards). |
| Management Fee | Greater of 10% of Gross Sales or $350 per day, plus Travel Expenses | 10 days after invoice | If you fail to timely cure a default under the Franchise Agreement, we can designate a person to manage your Salon until the default is cured. |
| Indemnification | Amount of our damages, losses or expenses | 10 days after invoice | You must indemnify us for losses and expenses we incur due to your operation of the Salon or breach of the Franchise Agreement. |
| Attorneys' Fees and Costs | Amount of attorneys' fees and costs we incur | Upon demand | You must reimburse us for all attorneys' fees and costs we incur relating to your breach of the Franchise Agreement or any related agreement. |
| Liquidated Damages | 2 years of royalty & brand fund fees - see Note 4 for calculation | 30 days after invoice | Imposed if we terminate due to your default or you terminate in any manner not permitted by the Franchise Agreement. |
Notes:
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- Nature and Manner of Payment: All fees are imposed by and payable to us except you spend the Local Marketing Commitment directly with third-party suppliers. All fees are nonrefundable and uniformly imposed other than the royalty fee "ramp up" for Qualifying Conversion Salons. You sign an ACH Authorization Form (attached to the Franchise Agreement as ATTACHMENT "E") permitting us to electronically debit your designated bank account for all amounts owed to us and our affiliates (other than fees due less than 15 days after signing the Franchise Agreement). You must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date. You are responsible for all taxes imposed on you or us based on products, intangible property (including trademarks) or services we provide to you.
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- Definitions: As used in this Disclosure Document, the following capitalized terms have the meanings given to them below:
- "Brand Fund" means the brand and system development fund we currently administer to promote public recognition of our brand and improve our System.
- "Gross Sales" means all gross sums you bill or collect from all goods and services sold, plus all other sums you collect from the operation of your Salon including advertising revenue, sponsorship fees and business interruption insurance proceeds. Gross Sales excludes: (a) sales or use taxes; (b) amounts refunded to customers; (c) revenue from the sale of furniture, fixtures and equipment in the ordinary course of business; and (d) tips paid to and retained by staff members as a gratuity. The Manual may include policies governing
the manner in which proceeds from the sale of gift cards are treated for purposes of calculating Gross Sales. The Manual may also provide details on the calculation of Gross Sales relating to membership fees and qualifying purchases and redemptions by members under a customer loyalty or membership program.
"Managing Owner" means the owner you appoint and we approve with primary responsibility for the overall management and operation of your Salon.
"Permitted Transfer" means a Transfer: (a) between existing owners; or (b) by the owners to a new business entity that is 100% owned and controlled by the transferring owners. It does not include a Transfer described in (a) or (b) that results in the Managing Owner owning less than 20% of the franchised business.
"Technology Systems" means all information and communication technology systems that we designate, including computer systems, point-of-sale systems, webcam systems, telecommunications systems, security systems, music systems, and similar systems, together with the associated hardware, software (including cloud-based software) and related equipment, software applications, mobile apps and third-party services relating to the establishment, use, maintenance, monitoring, security or improvement of these systems.
"Transfer" means a transfer or assignment of: (a) the Franchise Agreement or ADA (or any interest in either such agreement); (b) the Salon's assets (other than the sale of fixtures or equipment in the ordinary course of business); (c) any ownership interest in the entity that is the "franchisee" or "area developer"; or (d) the franchised business you conduct under the Franchise Agreement or ADA.
"Travel Expenses" means all travel, meals, lodging, local transportation and other living expenses incurred: (a) by us and our trainers, field support personnel, auditors or other representatives to visit your Salon; or (b) by you or your personnel to attend training programs or conferences.
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- CPI Adjustments: All fees expressed as a fixed dollar amount are subject to adjustment based on changes to the U.S. Consumer Price Index (CPI). We may periodically review and increase these fees based on changes to CPI, but only if the increase to CPI is more than 5% higher than the corresponding CPI in effect on: (a) the effective date of the Franchise Agreement (for the initial fee adjustment); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments). We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective. We may implement no more than 1 fee adjustment during any 5-year period.
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- Liquidated Damages: You must pay us liquidated damages if: (a) we terminate the Franchise Agreement due to your default; or (b) you terminate the Franchise Agreement prior to its expiration date (except in accordance with the provisions governing your right to terminate following our uncured breach). Liquidated damages are calculated as the sum of average weekly royalty fees and brand fund fees imposed during the 52-week period preceding termination (or your entire period of operation if less than 52-weeks) multiplied by the lesser of: (a) 104 (representing 2 years of fees); or (b) the total number of weeks remaining under the term. If you pay us liquidated damages in a timely manner, we may not pursue a claim against you for lost profits. However, payment of liquidated damages does not prevent us from seeking other damages we incur due to your breach.
ITEM 7 ESTIMATED INITIAL INVESTMENT
Table A: The table below includes the estimated initial investment to develop and open a single Salon. In preparing these estimates, we have assumed your Salon is not a Conversion Salon. If your Salon qualifies as a Conversion Salon, your initial investment may be lower.
YOUR ESTIMATED INITIAL INVESTMENT METHOD OF TO WHOM PAYMENT TYPE OF EXPENDITURE 1 AMOUNT WHEN DUE PAYMENT IS TO BE MADE Initial Franchise Fee 2 $49,500 Lump sum At time you sign Franchise Agreement Us Initial Training Expenses 3 $2,500 to $9,500 As incurred During training Hotels, restaurants, airlines & employee | TYPE OF EXPENDITURE 1 | AMOUNT |
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 cost for signage ranges from $7,000 to $13,000. This is a lump sum payment due before opening to the suppliers. Itan specifies that franchisees must purchase and install the signage that Itan specifies. However, the standard signage may need modifications to comply with local zoning laws, property use restrictions, and/or lease terms. In some cases, exterior signage might be prohibited due to zoning or use restrictions.
Signage is a crucial element for attracting customers and establishing brand recognition. The cost can vary depending on the size, materials, and complexity of the signage, as well as local regulations. Franchisees should factor in potential additional costs for modifications or alternative signage solutions if the standard signage is not permitted.
Prospective Itan franchisees should confirm with the franchisor the exact specifications for required signage to get accurate quotes from suppliers. They should also investigate local zoning and lease restrictions early in the site selection process to avoid unexpected costs or limitations on signage. Understanding these requirements upfront can help in budgeting and planning for the opening of the Itan franchise.