How does the initial Itan franchise fee in Item 5 compare for a veteran versus a non-veteran, considering the estimated initial investment in Item 7?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
INITIAL FEES**
Initial Franchise Fee
You pay us a $49,500 initial franchise fee at the time you sign the Franchise Agreement. The initial franchise fee is uniformly imposed except for the Veterans Discount, Conversion Discount and Multi-Unit Discount discussed below. If multiple discounts apply to the same Salon, you receive the discount that results in the lowest initial franchise fee. Discounts cannot be combined except as otherwise provided below.
Veterans Discount
If you qualify for the Veterans Discount, you pay us a $44,550 initial franchise fee for your 1st franchised Salon, which reflects a 10% discount ($4,950). To qualify, a person holding at least a 51% interest in the franchise must be an honorably discharged veteran of any branch of the United States military and provide us with a Form DD-214. If you purchase multiple Salons, the Veterans Discount will only be applied against the 1st Salon you purchase, except as provided below under Conversion Discount.
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the initial franchise fee is $49,500. However, Itan offers a Veterans Discount. An honorably discharged veteran of any branch of the United States military who holds at least a 51% interest in the franchise, and provides Itan with a Form DD-214, will pay a reduced initial franchise fee of $44,550 for their 1st franchised Salon. This represents a 10% discount of $4,950. If multiple discounts apply to the same Salon, the franchisee will receive the discount that results in the lowest initial franchise fee.
For a non-veteran, the estimated initial investment to open a single Itan salon, as detailed in Item 7, includes the full initial franchise fee of $49,500. The FDD notes that this estimate assumes the franchisee does not qualify for any discounts, including the Veterans Discount. The total estimated initial investment ranges from $360,194 to $626,564 if equipment is leased, or from $534,694 to $985,064 if equipment is purchased.
The Veterans Discount only applies to the first salon purchased, unless a Conversion Discount also applies. If a veteran's first salon qualifies for the Conversion Discount, the Conversion Discount is applied to the first salon, and the Veterans Discount can then be applied to the next salon purchased that is not a Conversion Salon. This policy provides an additional incentive for veterans looking to open multiple Itan locations, allowing them to maximize potential savings on initial franchise fees.