Are the fees payable to Itan refundable?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, all fees payable to Itan are generally nonrefundable. The FDD specifies that all fees are imposed by and payable to Itan, except for the Local Marketing Commitment, which franchisees may spend directly with third-party suppliers.
This nonrefundable policy means that once a franchisee pays a fee to Itan, they typically cannot get that money back, regardless of the circumstances. This is a standard practice in franchising, as these fees cover Itan's costs for providing services, training, and support to the franchisee. The only exception to the nonrefundable policy is the royalty fee "ramp up" for Qualifying Conversion Salons.
It is important for prospective Itan franchisees to carefully consider the financial implications of this nonrefundable policy. Franchisees should ensure they have a clear understanding of all the fees they will be required to pay and factor these costs into their financial projections. Understanding the nonrefundable nature of these fees is crucial for making an informed decision about investing in an Itan franchise.