What is the estimated total initial investment range 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 rather than leased, ranges from $534,694 to $985,064. This figure includes the development fee, but excludes the initial franchise fee.
Item 7 of the FDD provides a breakdown of the various expenditures that comprise this total initial investment. These include 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 3 months of operation ($10,000 to $40,000).
The FDD notes that 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, the extent and nature of existing leasehold improvements, the amount of landlord contributions, and demolition and construction costs in the local market. The cost to purchase real estate varies so widely that the FDD cannot reasonably estimate the cost.
Prospective franchisees should carefully review Item 7 and consider their individual circumstances, including the size and location of their salon, to determine their actual initial investment. Itan also strongly recommends hiring an accountant, business advisor, or other professional to assist in developing a budget for the construction, opening, and operation of the salon.