What is the estimated total initial investment for an Itan franchise if the equipment is leased?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE 1 | AMOUNT | METHOD OF | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| PAYMENT | ||||
| Development Fee 18 | $129,500 to $199,500 | Lump sum | At time you sign ADA | |
| Initial Investment to Open First Salon | [If Lease Equipment] $230,694 to $427,064 [If Purchase Equipment] $405,194 to $785,564 | This is the total estimated initial investment in Table A above less initial franchise fee, which is included in development fee. | ||
| Total Estimated Initial | $360,194 to $626,564 (if lease equipment) | |||
| Investment | $534,694 to $985,064 (if purchase equipment) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total estimated initial investment to open an Itan salon if the equipment is leased ranges from $360,194 to $626,564. This figure includes the development fee, which ranges from $129,500 to $199,500, and the initial investment to open the first salon, which ranges from $230,694 to $427,064.
Itan provides a breakdown of the estimated initial investment in Table A. This table lists various expenditures, including a lease deposit ($1,800 to $8,000), construction ($150,000 to $250,000), signage ($7,000 to $13,000), the startup package ($4,654 to $4,704), furniture and fixtures ($12,000 to $20,000), technology systems ($6,240 to $8,860), sun spray spa equipment ($20,000 to $40,000 if leased, which includes the initial payment and first three monthly lease payments), initial inventory ($7,000 to $10,000), miscellaneous opening costs ($1,000 to $2,000), grand opening marketing ($5,000 to $10,000), utility and security deposits ($500 to $4,000), business licenses and permits ($1,000 to $3,000), professional fees ($1,500 to $3,000), insurance ($500 to $1,000), and additional funds for the first three months of operation ($10,000 to $40,000).
Itan notes that these figures are estimates, and actual costs may vary. The estimates assume the franchisee does not receive a TI Allowance from the landlord. The cost of construction and leasehold improvements can vary widely based on factors such as the size and condition of the leased space, whether the premises is first or second generation retail space, and the amount of landlord contributions towards leasehold improvement costs. Prospective franchisees should carefully review all estimated costs and consider hiring professionals to assist in developing a budget for the construction, opening, and operation of their salon.