Does the Itan initial franchise fee estimate assume eligibility for the Conversion Discount?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
Notes:
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- Initial Franchise Fee: This estimate assumes you do not qualify for the Veterans Discount, Conversion Discount or Multi-Unit Discount discussed in Item 5.
[Item 7: ESTIMATED INITIAL INVESTMENT]
ITEM 7 ESTIMATED INITIAL INVESTMENT
Table A: The table below includes the estimated initial investment to develop and open a single Salon. In preparing these estimates, we have assumed your Salon is not a Conversion Salon. If your Salon qualifies as a Conversion Salon, your initial investment may be lower.
YOUR ESTIMATED INITIAL INVESTMENT METHOD OF TO WHOM PAYMENT TYPE OF EXPENDITURE 1 AMOUNT WHEN DUE PAYMENT IS TO BE MADE Initial Franchise Fee 2 $49,500 Lump sum At time you sign Franchise Agreement Us
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 initial investment to develop and open a single salon does not assume eligibility for the Conversion Discount. The FDD states that the estimates provided assume the salon is not a Conversion Salon. If the salon qualifies as a Conversion Salon, the initial investment may be lower than the listed estimates.
Specifically, the initial franchise fee is estimated at $49,500, payable in a lump sum when signing the Franchise Agreement. This figure is part of the overall initial investment, which ranges from $360,194 to $626,564 if leasing equipment, or $534,694 to $985,064 if purchasing equipment. These totals do not reflect any potential savings from the Conversion Discount.
Therefore, a prospective Itan franchisee should determine whether their planned salon location would qualify as a Conversion Salon to potentially reduce their initial investment. It is important to discuss the specific criteria for the Conversion Discount with Itan to understand if it applies to their situation and how much the initial investment could be reduced.