When is the late fee due to Itan?
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 |
| Salon 4 | $13,500 Discount | $36,000 | $165,500 |
| Salon 5 | $15,500 Discount | $34,000 | $199,500 |
| Salon 6 | $17,500 Discount | $32,000 | $231,500 |
| Salon 7+ | $19,500 Discount (per Salon) STARTUP PACKAGE ITEMS PURCHASED | $30,000 (per Salon) | $261,500 (plus additional $30,000 for each Salon in excess of 7) |
| FIT Bodywrap® | FDTC | $4,000 | |
| TANOLOGY® skincare products | EVOLV | $150 to $200 | |
| BRONZE LUMINESSENCE™ lotion | EVOLV | $150 | |
| CALIFORNIA SPA® Ageless Serum | EVOLV | $104 | |
| Branded Supplies (e.g., name tags, bed tents, iTAN tote bags and key tags) | EVOLV | $250 | |
| Total | $4,654 to $4,704 | ||
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a late fee of $100, plus default interest, is due 10 days after the invoice date. The default interest is calculated at the lesser of 18% per annum (prorated daily) or the highest rate allowed by applicable law. In California, the default interest is limited to 10% per annum.
In addition to the late fee, Itan may charge a Non-Sufficient Funds (NSF) fee of $100 per incident if a payment is debited from the franchisee's account but there are insufficient funds, or if a check is returned due to insufficient funds. This NSF fee is charged in addition to the late fee.
It is important for prospective Itan franchisees to understand these payment terms and ensure timely payments to avoid incurring late fees, default interest, and potential NSF fees. Maintaining sufficient funds in the designated bank account for electronic debits is crucial to prevent these additional charges.