factual

If I purchase the right to develop more than 5 Itan salons, what happens to the development fee?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Development Fee: Item 5 discusses how the development fee is calculated. This initial investment estimate assumes you commit to develop either 3 Salons (low estimate) or 5 Salons (high estimate). If you purchase the right to develop more than 5 Salons, your development fee will increase.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, the development fee will increase if you purchase the right to develop more than 5 salons. The initial investment estimate provided in the FDD assumes a commitment to develop either 3 to 5 Itan salons. The development fee ranges from $129,500 to $199,500.

This means that if you plan to develop more than 5 Itan salons, you should anticipate a higher development fee than the range provided for 3 to 5 salons. The FDD does not specify how much the development fee will increase.

Prospective franchisees should inquire with Itan about the specific development fee structure for commitments exceeding 5 salons to accurately assess the financial implications of a larger development agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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