What is the estimated total initial investment for an Itan franchise if the equipment is purchased?
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 estimated total initial investment to open an Itan salon, if the equipment is purchased, ranges from $534,694 to $985,064. This figure includes the development fee, which ranges from $129,500 to $199,500, and the initial investment to open the first salon.
The initial investment covers various expenses, such as lease deposit ($1,800 to $8,000), construction ($150,000 to $250,000), signage ($7,000 to $13,000), 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 ($194,500 to $398,500 if purchased), initial supply of 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).
Prospective franchisees should note that these are estimates, and the actual initial investment can vary based on factors like location, the size and condition of the premises, and local market conditions. The document assumes the salon is not a conversion salon, which could lower the initial investment. Itan also recommends hiring professionals to assist with budgeting and developing a business plan.