What is the initial franchise fee for the third Itan salon if I qualify for the Multi-Unit 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 |
| Salon 3 | $11,500 Discount | $38,000 | $129,500 |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the initial franchise fee for the third salon, if you qualify for the Multi-Unit Discount, is $38,000. To qualify for the Multi-Unit Discount, you must purchase franchises for two or more salons at the same time, sign franchise agreements for all salons at the same time, and pay the initial franchise fee in full for all salons when you sign the franchise agreements.
The Multi-Unit Discount provides a tiered reduction in the initial franchise fee based on the number of salons purchased. The discount for the third salon is $11,500 off the standard initial franchise fee. This discount is only applicable if you are purchasing multiple Itan franchises simultaneously.
It is important to note that if multiple discounts apply to the same salon, Itan will apply the discount that results in the lowest initial franchise fee. Discounts cannot be combined unless otherwise provided. Therefore, if another discount, such as the Veteran's Discount, would result in a lower fee for the third salon, that discount would be applied instead of the Multi-Unit Discount. Prospective franchisees should carefully review the terms and conditions of all available discounts to determine which provides the greatest benefit for their specific circumstances.