What is the initial franchise fee for Salon 2 under the Itan franchise agreement after the discount?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Salon | Discount | Initial Franchise Fee | Development Fee (Imposed under ADA) |
|---|---|---|---|
| Salon 1 | No discount (Unless Veterans Discount applies) | $49,500 | N/A – 3 unit minimum for ADA |
| Salon 2 | $7,500 Discount | $42,000 | N/A – 3 unit minimum for ADA |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the initial franchise fee for a Salon 2 franchise is $42,000 after a $7,500 discount. This discounted fee is part of a tiered structure where different salon models (Salon 1 through Salon 7+) have varying initial fees and discount amounts.
This tiered fee structure may reflect differences in the size, services offered, or market potential of each salon type. It is important for prospective franchisees to understand which salon model best fits their investment capacity and business goals. The availability of a discount can significantly lower the initial investment, making the Salon 2 model potentially more accessible than Salon 1, which has a higher initial fee of $49,500 without a standard discount (unless a Veterans Discount applies).
Itan also charges other fees, such as a development fee under the Area Development Agreement (ADA), which is not applicable to Salon 2 unless a minimum of three units are developed. Franchisees should carefully consider these additional fees and requirements when evaluating the overall cost of investing in an Itan franchise. Understanding the specific requirements and benefits associated with each salon model is crucial for making an informed decision.