If I acquire area development rights for 3 Itan salons, what is the development fee?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
alon in excess of 7) |# Development Fee
If you acquire area development rights, you pay us a nonrefundable development fee at the time you sign the ADA. The development fee is calculated as the sum of all initial franchise fees for all Salons you commit to develop under the ADA. The initial franchise fees imposed under the ADA are the same as those discussed above under the Multi-Unit Discount. We expect most area developers will purchase the right to develop between 3 and 5 Salons, which requires a development fee of $129,500 (for 3 Salons) or $199,500 (for 5 Salons). The development fee is deemed to satisfy the initial franchise fee for each Salon you are required to develop under the ADA.
The Conversion Discount does not apply to any Salons developed under an ADA. If you qualify for the Veterans Discount, you receive a $4,950 discount off of your development fee. Development fees are uniformly imposed except as oth
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if you acquire area development rights for three salons, the development fee is $129,500. This fee is nonrefundable and is paid when you sign the Area Development Agreement (ADA). The development fee satisfies the initial franchise fee for each of the three salons you are required to develop under the ADA.
Itan expects that most area developers will purchase the right to develop between 3 and 5 salons. The development fee covers the initial franchise fees for all salons you commit to develop under the ADA. The initial franchise fees imposed under the ADA are the same as those under the Multi-Unit Discount.
It is important to note that the Conversion Discount does not apply to any salons developed under an ADA. However, if you qualify for the Veterans Discount, you will receive a $4,950 discount off of your development fee. Development fees are uniformly imposed except for the Veterans Discount.