When do all fees imposed under the Franchise Agreement for an Itan franchise apply?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ll times prior to issuance of the Certificate of Conversion Completion, including throughout the conversion process, you may, but need not, continue to operate the Current Business at the Premises.
- 6. Grand Opening. Section 10.3(a) of the Franchise Agreement is deleted in its entirety. Within the 30-day period following our issuance of the Certificate of Conversion Completion, you must spend a total of at least $5,000 on advertising and other marketing activities to promote the conversion of your Current Business and reopening as an iTAN Salon, including digital advertising, guerilla marketing and public relations. We must approve all such advertising in accordance with §10.3(a) of the Franchise Agreement. We may specify a grand opening marketing program that you must follow.
- 7. Fees. All fees imposed under the Franchise Agreement shall apply, commencing with the execution of the Franchise Agreement, except as otherwise provided below:
- (a) Initial Franchise Fee. If you operated your Current Business for at least one (1) year prior to execution of the Franch
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, all fees imposed under the Franchise Agreement apply starting with the execution of the Franchise Agreement. There is an exception to this rule, as otherwise provided in the agreement.
For example, if a franchisee operated their current business for at least a year before signing the Franchise Agreement, their initial franchise fee is reduced to $15,000. However, this discount does not apply if the Franchise Agreement is executed under an Area Development Agreement.
Additionally, the initial payment of royalty fees and brand fund fees is due on the first Wednesday following the Conversion Date. This payment is calculated based on Gross Sales from the Conversion Date through the close of business on the Sunday immediately preceding the first royalty fee due date. If the Conversion Date falls on a Monday or Tuesday, the first royalty fee and brand fund fee will be $0. Commencing with the Conversion Date, the royalty fee will be as set forth in the table below.